The retail warranty reimbursement process has been a topic of legislative discussion for many years, but many dealerships have been unaware of the process and are hesitant to pursue it. Although most manufacturers have accepted that dealers are entitled to this service, many have enacted policies that thwart their dealer’s ability to collect full retail reimbursement. Fortunately, there are some simple tips for dealers to make the most of this difficult time.
The first step is to review your current policy regarding warranty reimbursement. The new law takes effect January 1st, but it’s important to get started early. Some manufacturers are trying to lock you into a uniform warranty reimbursement agreement that pays much less than what you’ll be eligible to receive on January 1. IADA recommends consulting with private legal counsel before entering any such agreement. It will protect you against any possible future liability that arises from an unsatisfactory warranty repair.
Second, submit accurate repair order details. If your warranty reimbursement application is inaccurate, it will be rejected. For this reason, dealerships should hire a third party to perform this analysis. The third-party company does not act as an attorney, but it can help you maximize your warranty reimbursement rate. Lastly, consult with an attorney, as they have extensive knowledge of factory protocol and state law. If you are a dealer and are unsure how to properly submit your warranty reimbursement application, fixOpsLab can submit the application for you on your behalf.
While manufacturers are allowed to adjust their dealer warranty rates, they have limited discretion. They compare retail warranty reimbursement rates across different dealerships. In certain cases, the manufacturers can argue that the retail warranty reimbursement rate is “unreasonably high.” However, a manufacturer’s claim of unreasonable retail warranty reimbursement rates is void if a state statute prohibits them from raising it. These laws will be in effect beginning January 1, 2022.
In addition to reducing the retail Warranty Reimbursement Rate, the legislation also protects the interests of auto dealers. By enacting HB 502, the state legislature amended the law in such a way that suppliers will have to comply with new requirements. It will eliminate the practice of using “no cost” parts without reimbursement and will limit supplier’s ability to recover costs through surcharges. Finally, it will impose stricter reimbursement requirements for “pre-delivery preparation” or stop-sale repairs.
For dealers, Retail Warranty Reimbursement is another way to minimize the cost of auto repair. Dealers must have a valid auto warranty in order to receive reimbursement. To be eligible, they must submit a claim form to the manufacturer or retailer that sold the vehicle to them. In some cases, they must provide proof of purchase of the car as well. If the vehicle needs repairs, retail warranty reimbursement can help them pay for the repairs.
The law states that manufacturers can adjust their dealer warranty rates to reflect the prevailing wage rate in their market area. To calculate the dealer’s retail warranty rate, manufacturers must compare it to the rate dealers pay for the same service. Some manufacturers even claim the rate is “unreasonable” in order to justify the lower reimbursement rate. Furthermore, many manufacturers ignore state laws and rely on their own policy in determining the retail warranty reimbursement rate for dealers.
A retail warranty reimbursement claim is legal when the dealer performs the repair according to the manufacturer’s warranty policy. While the warranty reimbursement rate is intended to cover the labor and parts costs of repairs, it is not always enough. Get in touch with Warranty Part for Dealer Warranty Reimbursement. In addition, the manufacturer has the discretion to set minimum compensation levels and set markups for warranty repair work. The only way to be sure that you receive the proper compensation for your warranty repairs is to ask your dealership to follow its policy.
To ensure that your claims are processed correctly, hire a company that is experienced in retail warranty reimbursement. A company with extensive experience will help you comply with state laws and ensure your warranty claims are processed correctly. QB Business Solutions has the proven systems and dedicated staff that can help you manage the warranty claims process. These professionals will help you navigate the complex rules and regulations governing the warranty process. They will help you get the most out of your warranty claims.
