A good retail warranty reimbursement program is beneficial to consumers and dealers alike. But many dealers fail to take advantage of this program. This is often due to misguided fears of OEM retaliation, previously unsuccessful submissions prepared by dealership personnel, and general misconceptions of the process. If you want to maximize your warranty reimbursement rate, contact a retail warranty consulting firm to help you prepare your submission. The company will be able to provide a road map to success for your warranty reimbursement program.
In addition, retail warranty reimbursement rates vary depending on the manufacturer. Some manufacturers will lower their rate if they find a competitor with a lower rate for the same service. Other manufacturers will increase their reimbursement rate if it is justified by a manufacturer’s internal calculations. Dealers may be able to reduce their rates by negotiating additional benefits with the manufacturer. If your dealership does not have this policy, you can ask your car manufacturer for a higher warranty reimbursement rate from them.
With proper legal counsel, retail warranty reimbursement can be an effective revenue stream for dealerships. Even small dealerships can recognize hundreds of thousands of dollars of extra profits per year through the program. Dealers should consult with an attorney to determine whether they are taking advantage of all possible advantages. Retail warranty reimbursement can increase dealership bottom lines by thousands of dollars per month or even hundreds of thousands of dollars a year. But before you start asking for warranty reimbursement, make sure you have the right attorney on your side.
Dealers should be aware that retail warranty reimbursement rates are equal to or higher than customer pay rates. Some manufacturers will reimburse up to seventy per cent of parts and eighty per cent for labour. This means that, even if your dealership uses list pricing, you can expect to double your warranty gross profit! That’s a substantial improvement in your profitability! And since it’s legal, you can ask your dealer to accept this reimbursement rate.
Moreover, warranty parts reimbursement rates vary widely from state to state. In 48 states, manufacturers are permitted to reimburse dealers at a “retail” rate, which does not mean list price. In reality, it means the dealer’s customer “repair” rate. This will allow you to maximize your retail warranty gross profit and avoid the hassle of vehicle repair. In many states, this means an increase in your gross profit.
QB Business Solutions is a company of highly-experienced professionals dedicated to helping automotive dealerships maximize their warranty reimbursements. They have a proven track record and the expertise needed to handle complicated warranty claims. QB Business Solutions is an operational partner that keeps up with changing state and brand laws and training requirements. We’ll make sure that your warranty claims are processed quickly and accurately. If you’re an automotive dealer in need of a warranty management solution, you can rely on our team. Get in touch with Warranty Part for Dealer Warranty Reimbursement.
Retail Warranty Reimbursement has become a common issue in automotive service. In most states, a manufacturer pays an authorized dealer for warranty repairs. Dealers, on the other hand, charge a retail rate for labour and parts when performing warranty repairs. However, the Virginia Court of Appeals has ruled that this is no longer allowed, and the consumer must pay the retail rate for warranty repairs. So, it’s better to follow the rules, but the practice is still subject to the same issues.