Retail rates for warranty

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Retail Warranty Reimbursement

Wooden Automotive Consultants (Warranty Part) helps dealers increase their warranty reimbursement rates using superior analytics, experience, and proven processes. We are focused on each client’s project so they can concentrate on running their business without interruption.

A Brief History

1.Warranty Parts Markup

Prior to the 1990’s, franchised automotive dealers received a 30 % mark up on parts used in warranty repairs. In the early 90’s, dealer councils began pushing for higher mark-ups due to the increasing operating costs, with much of the additional expense being imposed upon them by the manufacturers. After successfully negotiating a higher mark-up, dealers were upset when manufacturers began changing their warranty policies to chip away at the accomplishment. Artificially lowering dealer cost on recall parts, requiring “no charge” exchanges or paying flat fees on expensive parts, left dealers feeling the factory was their advisory and not their partner. Fed up with the factory’s games, Liberty Lincoln Mercury filed a successful class action lawsuit against Ford Motor Company in 1993 citing the states “retail reimbursement” statute.

As word of Liberty’s victory began to quietly spread among the industry, dealers across the country began to research their state’s franchised warranty laws only to find that most were either too vague to be of use or all together non-existent.

Dealers pressed state legislators and their automotive professional associations to amend the laws allowing dealers to collect the same rates as they charged a retail customer. Today, 49 states have retail rate laws, and more dealers are waking up to the positive financial impact of exercising their rights under these statutes.

Warranty Labor Rates

Before retail rate laws, a dealer’s warranty labor rate was established at the “benevolence” of the manufacturer based on little more than a survey of nearby dealer’s warranty rates and a subjective ruling by a corporate bureaucrat. In an effort to placate dealers, manufacturers offered annual, automatic rate increases based on the consumer price index. While this seemed fair, the cost of doing business far outpaced these small increases and dealers again were frustrated.

Misconceptions, complex state statutes and manufacturer protocols, limited internal resources and intimidation by the factory are just a few of the challenges dealers face when considering seeking retail reimbursement.

Dealer Warranty Reimbursement Solutions

The Wooden Automotive Consultants (Warranty Part) has been helping dealers increase their warranty rates since 1997. They are pioneers in the industry and work with all franchises, in all states. Trust your project to their team of experts.

The Roadmap to Retail Warranty Reimbursement
  1. Free Uplift Analysis – we analyze repair order data to identify the group of invoices that will yield the highest rates. Our analysis drills down to the individual part number level of each repair to provide our clients accurate estimates of future rates.
  2. Uplift Submission Authorization – after reviewing our analysis, you chose if submitting a request is the right decision for your business.
  3. No Financial Data Required – We do not require disclosure of financial information to complete our work or to bill our clients.
  4. Data Security – Our expert technical team ensures your customer’s data is secure and protected.
  5. Document Review – our experienced audit team manually reviews and documents each repair order to ensure they comply with the manufacturer’s requirements and state laws.
  6. Continuing Support – we stay with our clients, continuing to guide them through the steps after a submission and provide guidance to improved future rate increases.