Retail Warranty Reimbursement
Retail Warranty Reimbursement is an essential tool that dealerships can and should use to increase and maximize profits for a successful business over time. The Retail Warranty Reimbursement process enables dealers to receive, at retail customer rates, reimbursement for warranty parts and labor used in connection with warranty repairs.
All 50 states provide statutory filing guidelines to ensure dealer reimbursement for both parts and labor at retail rates. Each state has its own set of rules and guidelines for Retail Warranty Reimbursement, including key dates and deadlines, in addition to frequency and timing of warranty rate submissions. FixedOpsLab is well versed in each state’s requirements to ensure an accurate and complete submission in a dealership’s respective state.
Retail Warranty Reimbursement submissions filed under state statutes are different from the traditional market area submissions that typically result in much lower increases. Many dealers lose significant money by attempting to do this in-house. Statutory submissions can result in hundreds of thousands of dollars in increased net profit for dealers. In fact, over a five (5) year period, the increased revenue often exceeds the blue-sky value of a dealership. The difference in receiving what the manufacturer may offer a dealership and the optimum markup that a dealership is entitled to under the statutory guidelines will certainly have a significant impact to a dealership’s financial viability and continued growth.
In order to ensure the highest possible recovery under Retail Warranty Reimbursement submissions, there are 3 key points to consider:
Communication
A dealer should always communicate with and send proper notification to the appropriate OEM contacts that a submission is being made for increased parts and labor rates.
Accuracy
Perfection is important; otherwise, a submission can be rejected. To minimize potential submission issues, dealers should work with FixedOpsLab to submit the applications to the manufacturer.
Experience
It is vital to use an industry expert who is knowledgeable in Retail Warranty Reimbursement, including all processes, guidelines and overall submission requirements.
Pricing
FixedOpsLab provides industry “best in class” services, which save our clients thousands of dollars in fees. Our services are presented on a low flat fee basis, and we do not take any percentages of dealer profits, do not engage in contingency-based pricing and do not become partners in your dealership. We do not collect any fees until the manufacturer delivers an approval of an increase in your rates.
Please Contact Us for further information regarding FixedOpsLab’s Retail Warranty Reimbursement services.
Many dealers are not taking advantage of Retail Warranty Reimbursement. This can be a result of misguided fears of OEM retaliation or audits, prior rejected submissions prepared by dealership staff, general misconceptions regarding the process or an overall lack of up-to-date knowledge.
FixedOpsLab is ready to deliver expert assistance to your dealership to prepare all Retail Warranty Reimbursement submissions to realize the significant benefits that you deserve.
