That seems like a lot of parts and work. Why not just replace the entire transmission?
Cost Caps are employed to make that decision, as described in these edited FAQs on the topic...
What is a Cost Cap?
A 'Cost Cap' is a price point, established by the Company, at which the replacement of a powertrain assembly, instead of its repair, becomes the recommended service action.
Why is a Cost Cap needed?
Per the Warranty & Policy Manual, the most cost effective repair must be performed. Cost Caps provide dealerships with a simple process for determining which service action -- repair or replacement -- is the lowest cost.
What is the Cost Cap Tool and why must it be used?
The Cost Cap Tool is a web based tool that provides a repair vs replace decision in support of the warranty policy outlined in the previous question. The online Tool renders a decision based on various internal calculations using preloaded and manually entered dealer, vehicle and repair information.
The Cost Cap Tool must be used on Warranty Covered Repairs, whenever the total cost of the repair to a gas engine, diesel engine, automatic or manual transmission is expected to exceed the dollar threshold listed below and/or when it is likely that the replacement of the powertrain assembly may be the least expensive repair alternative:
Diesel Engines $7000
Gas Engines $2500
Automatic Transmissions $1500
Manual Transmissions $1000
Who is allowed to complete the Cost Cap Tool?
The Cost Cap Tool was designed to be used by the Technician servicing the vehicle as they would have the first hand knowledge of which parts and components would be needed to complete the repair. However, it is the dealership's management responsibility to determine who completes the Cost Cap Tool.
NOTE: In accordance with the Warranty Policy Manual, to complete the Cost Cap Tool and, when applicable, the Warranty or Extended Service Plan Prior Approval processes, the failed powertrain assembly must be disassembled to the point that a comprehensive inspection can be made to determine both the root cause of the concern and the parts and components that would be needed to fully complete its repair. This is required even in the event of a catastrophic failure.
How does the Cost Cap Tool make the repair vs. replace decision?
The Cost Cap "decision" is a comparison of the estimated cost of repairing a powertrain assembly vs. the cost of replacing the assembly. Using certain preloaded and manually inputted information on your dealership, the vehicle and the repair, the online Tool develops both a repair and a replace estimate. A simple comparison of the total costs between these two estimates will provide one of the following decisions:
If the Repair estimate is LESS than the Replace estimate then REPAIRING the powertrain assembly is the recommended service action and, per the Warranty & Policy Manual, the most cost effective repair must be performed.
If the Repair estimate is GREATER than the Replace estimate then REPLACING the powertrain assembly is the recommended service action and, per the Warranty & Policy Manual, the use of a Ford remanufactured engine or transmission assembly is required on warranty covered repairs. Failing to use a Ford remanufactured engine or transmission, when one is available, could result in a chargeback of a previously paid claim.
What do I do once a Cost Cap form is completed?
The Cost Cap Tool will provide the Repair vs. Replace decision on the final page / Decision Page. This Decision page should be printed (hard copy) or stored electronically and kept as part of the dealer documentation, as stated in the Cost Cap Tool.
Next, if either warranty or ESP prior approval is required for this repair (repair or assembly replacement) it must be obtained before the repair is initiated. After this, the repair should be completed as directed, insuring all aspects are fully documented per the Warranty & Policy Manual.
The Cost Cap Tool's Repair vs Replace decisions do not replace or substitute for any Warranty or ESP prior approval programs. Furthermore, it is very important that your dealership's prior approval requirements be understood and followed.
NOTE: The Warranty (Technical Hotline) and Extended Service Plan Prior Approval Centers are authorized to negate a Cost Cap Tool Repair vs Replace Decision and direct / approve a different service action.