Sometimes perverse incentives are set up; for example, the manufacturer may offer a "bonus" payment if the number of warranty claims serviced by the dealer in a

Sometimes perverse incentives are set up; for example, the manufacturer may offer a "bonus" payment if the number of warranty claims serviced by the dealer in a quarter is below a specified target. Sometimes, "book time" to fix a particular defect is lower than the actual time, and manufacturers pay out on book time. However you spin it, the dealer-manufacturer relationship ends up working in favor of the manufacturer, as they control the inventory and the bottom line of the dealer's balance sheet.