Warranty reimbursement rates can be as much of a business opportunity for dealers. Many manufacturers offer their dealerships an extremely lucrative rate when it comes time to cover warranty work. However, the law limits what they have available regarding financing options or how much profit each party will make off these deals – only 40%. There is still plenty left up between both parties, including cost-plus 90%, which average around $75K annually.
The result will have minimal impact in the end. No! Majority of dealerships will receive an increase of at least $50,000 annually, covering the cost within 30 days while working as a perpetual revenue system.
• The manufacturer will seek retribution against me. Not really. We performed these analyses and reimbursements for over a decade, and we see no evidence of manufacturers seeking direct retribution against dealerships.
• Retail price and MSRP are equal, and MSRP is in the control of a manufacturer that is significantly less than the retail price in many cases.
• Manufacturers will refuse approvals. The team at Warranty Parts is familiar with the laws and the processes that ensure higher chances of approvals.
• Cost of service recouped in less than 30 days
• Waiting is not costly. You become eligible for reimbursements almost immediately, and waiting time keeps the money you deserve out of your pocket.
Contact us for more information or set a meeting to initiate your reimbursement process.
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Yes. It’s the law in nearly every state, yet many dealers have not taken advantage of the potential windfall that a warranty uplift can bring.
Yes. Check out our website interactive map www.warrantypart.com. Read your state’s law regarding warranty rates.
This is a common misconception and often paralyzes dealers with fear. The truth is most state laws are specifically written to protect dealers from punitive audits by the factory. In our 25 + years of experience, we have never had a client audited due to a rate increase.
Remember, the factory has a team of legal experts dedicated to stopping dealers from receiving higher rates. Ask yourself these important questions before attempting it on your own:
We charge a low, flat fee and never take a cut of your increase.
45 – 60 days on average from start to finish. Most states allow the factory 30 days to review your claim.
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