For years, payment on warranty work has been a point of contention in the dealer-factory relationship. Around the country, changes are being made to protect the dealer. Today, more than forty states have laws mandating that manufacturers reimburse dealers for their warranty-related labor and parts at the same rate that the dealerships charge for retail repair work.
So why aren’t more dealerships taking advantage to increase their warranty reimbursement? Many either do not know that this is available, are worried about retaliation by the manufacturer, or don’t think they have time to deal with the substantial red tape.
Our dealership consultants will help you prepare and submit the reimbursement applications to your state. Some manufacturers may question the submission, but the documentation we prepare will address those questions. We handle it all so you can focus on running your business and collect the reimbursement from your manufacturer.
We extract data on previous warranty repairs and compare it to similar non-warranty repairs to document rates.
We prepare a report, using the extracted data, to document what appropriate reimbursement should be according to state and factory guidelines. This report is then submitted to the manufacturer.
Once the manufacturer and dealer agree on a new increased rate of reimbursement we work with the dealer to implement the newly accepted warranty mark-up.