Double
Dippers - How Dealers get paid twice from one repair.
Occasionally manufacturers will make exceptions in their
warranties to cover special problems or defects with their
products. Such exceptions are referred to as "hidden
warranties" (as opposed to vehicle "recalls"
which are items that relate directly to the safety of
a vehicle). An unethical repair facility may charge both
the customer AND the manufacturer when repairing a defect
covered by a "hidden warranty."
For
example, a consumer may find a problem with their vehicle,
bring it into a dealership for repairs, pay for that repair,
and NEVER know that the problem was actually being paid
for by the manufacturer of their vehicle at the same time.
One
reason this happens is because it is not mandatory in
most states that a manufacturer reveal to consumers that
their vehicle has additional "hidden warranties"
not expressed in their original manufacturer's warranty.
The manufacturers know that service facilities "double
dip" on occasion. They do little or nothing about
this practice because it is in their best interest not
to disclose defects, newly covered items, or get repairs
done at their expense.
Many
service facilities know that consumers are unaware of
"hidden warranties" and can take advantage of
consumers that have a real defect in their vehicles. A
consumer can read their manufacturer's warranty countless
times but it will never reveal the "hidden warranties."
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