In the wake of the economy’s slump and declining retail sales, dealers are looking to find new ways to boost their bottom line and increase profitability. One of the best ways to do this is to work with an expert in dealer warranty reimbursement. The company, Dealer Lab, has experts on its staff who are familiar with many manufacturers’ policies and procedures. Typically, these experts are paid a salary and receive compensation packages based on their time to resolve customer complaints.
While many dealers are aware of the benefits of warranty reimbursement through the OEM, not all are taking advantage of it. They don’t want to deal with the red tape and paperwork that comes along with this. To make this process as painless as possible, LumenaLitts and Thomas Hall outline the key elements and the components of the dealer warranty reimbursement process. They’ll also give you an overview of how the process works and how to get started.
Fortunately, a decision was recently made by the Motor Vehicle Admin. Appeals Bd. will limit dealer control of warranty reimbursement rates. While it may sound complicated and costly, the end result is well worth it.
In most cases, dealers can receive up to 50% of the total cost of parts and labor when they complete a repair under warranty. That’s a tremendous benefit for dealerships! The final approval will depend on how quickly the dealership responds to the manufacturer’s demands.
Despite the numerous benefits of utilizing the dealer warranty reimbursement program, many dealers don’t take advantage of the opportunity. While this process is relatively simple, it requires some preparation, and it should be approached professionally to improve overall profitability.
Otherwise, dealers can lose thousands of dollars a year if they fail to follow the process. There are several key components of dealer warranty reimbursement. Before the dealership applies, it must calculate its average labor rate and parts markup. Additionally, the manufacturer might request additional repair order documentation to determine if the request is legitimate.
Dealer warranty reimbursement rates are calculated by applying a formula. If a vehicle needs to be repaired under warranty, a manufacturer must reimburse the dealer for the labor and parts. Generally, the manufacturer should reimburse the dealer at the same rate that it pays for a retail repair.
However, most dealers don’t realize they can get a higher reimbursement rate. Further, many dealerships don’t know that they can increase the rebates they receive from their customers. A consultant can evaluate the number of customer-paid repair orders and calculate average retail rates for them.
Dealer warranty reimbursement is a significant component of the car repair process, and manufacturers must reimburse the dealer for labor and parts used for warranty work. Because these services are often necessary for repair jobs, they are beneficial to consumers and dealerships.
As a result, both parties need to understand the law. While it can be difficult to justify, the reimbursement process is critical for the dealership’s bottom line.
Dealer warranty reimbursement laws vary by state. In New York, the Franchised Motor Vehicle Dealer Act, for example, requires manufacturers to reimburse dealers for warranty parts. While this may seem like an unwelcome complication, it is an essential step towards protecting your business.
The law provides that the manufacturer must pay the dealer, but it does not provide specific amounts. A successful consumer must support a successful claim for the dealer to receive full reimbursement of these costs.
Usually, a dealership can apply for reimbursement from an OEM through a third-party service. They can offer the service for free if they’ve paid the manufacturer a fair price for the parts and labor they installed. Similarly, a dealer can charge the customer for the details and work needed to warranty repairs the vehicle.
A good option is to ask a third-party company to handle the claim. These companies can take the claims and help the dealerships receive maximum compensation for the repair.
Moreover, the process for a warranty reimbursement has its ups and downs. Sometimes, the manufacturer will reject your submission or even parts of it. This means that you may have to wait a long time before you can get your money back. While this may not be ideal for your business, it’s definitely worth the effort. This process can result in a substantial return for your business, and you’ll be able to keep your cash flow up and your reputation intact, visit Warranty Part.
