While the Retail Warranty Reimbursement program is a good idea, it’s often not taken advantage of by dealers. Many of these reasons may be related to misguided fears of OEM retaliation, preparation errors, outdated information, or simply a lack of experience. Fortunately, FixedOpsLab can help dealers prepare Retail Warranty Reimbursement submissions that will maximize their chances of being approved.
Before the advent of retail rate laws, warranty labor rates were set by manufacturers’ “benevolence.” In other words, they were based on a survey of nearby dealers’ rates, or a subjective ruling by a corporate bureaucrat. Even with these rules, manufacturers offered automatic rate increases based on the consumer price index each year, but the cost of doing business quickly outpaced these small increases. These barriers to retail reimbursement may include misconceptions, insufficient resources within dealers’ organizations, and intimidation by the factory.
To prevent this, manufacturers must compare their retail warranty reimbursement rates to those of other dealers. This way, they can argue that their retail warranty rate is “unreasonably high.” However, this argument only works when the manufacturer’s state statute prohibits the manufacturer from increasing the rate. Even so, if a manufacturer’s retail warranty rate is higher than another dealer’s, it may be legal to adjust it.
Quality service is paramount in retail warranty reimbursement. Quality warranty claims management can save your dealership thousands of dollars annually. QB Business Solutions provides exceptional service for automotive dealerships and has more than 25 years of experience. QB Business Solutions adapts to new state and brand laws, as well as changing training requirements. Its highly-experienced staff is capable of handling complex warranty claims. With QB Business Solutions, you can relax knowing your dealership is receiving the best possible service for all its customers.
The Retail Warranty Reimbursement Rate depends on several factors, including labor rate, conditions for warranty reimbursement, and the markup of parts used. Besides, this may affect your relationship with your car manufacturer. The Retail Warranty Reimbursement Rate may not apply to every car model. However, if it does, it may limit your ability to choose the repair facility that best fits your needs. It’s important to understand how this rate works before requesting an increase.
To be eligible for Retail Warranty Reimbursement, a dealer must submit a minimum of 100 customer-paid repair orders within ninety days. This higher rate applies to repairs other than routine maintenance repairs. The process is complex and most manufacturers will not approve initial requests due to lack of legal expertise. To improve your chances of approval, consult a qualified consultant. They can help you to submit a stronger warranty reimbursement case.
Retail Warranty Reimbursement is an excellent way to boost dealerships’ revenue without significantly increasing volume. With the right legal counsel, you can leverage the program to boost your dealership’s bottom line by hundreds of thousands of dollars per month and even more annually. In the past, dealers in the Northeast have successfully taken advantage of this program without significantly increasing their volume. So why aren’t more dealerships using this system?
The court will examine the evidence to determine which method is more equitable. Darling bases her method on the retail rate of labor for dealers. However, this is lower than the reimbursement rate GM offers dealers. The court will likely decide on a lower reimbursement rate, based on both sides of the case. Get in touch with Warranty Part for Dealer Warranty Reimbursement. If the court decides that Darling’s method is more equitable, GM will most likely have to reimburse dealers for warranty work.
GM has implemented a nationwide system for processing warranty reimbursement claims, called the “Warranty Information Network System,” which is a computer-based database that allows dealers to submit their claim electronically. Dealers submit claims using a form that contains information such as the repair order number, the date the service was performed, the vehicle VIN, and any failed parts, including parts. Dealers submit the information electronically through WINS, which automatically compares all the information with existing computer records.