Dealer Warranty Lift
Auto dealers have been forced to discount their warranty parts. Typically the manufacturer reimburses a dealer at a rate of cost plus 40%. Additionally, the same can be said for the labor side of the warranty work. There is often a discrepancy between the customer pay rate and what the dealer receives for warranty work.
Over the last several years, 40 states and counting have enacted legislation that entitles dealers to be reimbursed for warranty work at retail, which is actually the dealer’s customer “repair” or “door” rate.
The dealer can also realize an increase in warranty labor reimbursement to a figure close to or at the customer pay rate.
- Complexity of State Statutes
- Manufacturer Protocols
- Data Acquisition and Processing
- Gatekeepers Suboptimal
Brady Ware will handle the process with very little effort needed from the dealer. We will need access to DMS for RO analysis.
Once the dealer reviews the projections and decides to proceed, they will send us a signed Submission Authorization Agreement, and the store will get in the queue.
The dealer gives approval, and then pertinent data is extracted.
Analysis, Preparation, and Delivery
Software and data management methods pinpoint best possible mark-up. Then, we initiate our detailed audit, annotate where appropriate, apply discount and finally, configure the submission package according too factory and state guidelines.
Upon factory approval, the DMS markup can then be modified and immediately and permanently reap the benefits of your additional warranty parts profits.