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post #4 of (permalink) Old 29th August 2008
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Renault don't get any money from the labour charged on jobs. The dealerships are free to set their own labour rates, but must only charge for the standard time set for each job (e.g. service = 2.1 hours). Renault's warranty department will have agreed labour rates for performing warranty repairs.

The dealership also gets a mark up on parts, which (if like Ford) have 3 re-order cycles; stock, rush, IVO (Immobilised Vehicle Order). Each of these stages will be weekly, twice weekly, or next day delivery, and will also incur a sliding scale surcharge on the part price charged to the dealer.

Of course, I haven't mentioned the VAT aspect which heads directly to the Government coffers...

Hope that helps,


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