Virtually all states require OEMs (Original Equipment Manufacturers) to reimburse dealers for warranty parts and labor at retail rates. However, OEMs will do everything they can to pay dealers at rates lower than those which they are entitled Withum’s retail warranty reimbursement specialists have seen warranty parts or labor submissions increase gross profit by $5,000 to $10,000 at a minimum.

Find out how our Dealership Advisory Team can assist you in preparing your dealership’s warranty reimbursement submission to the manufacturer and ensure you receive the rates to which you’re entitled.

Frequently Asked Questions on Parts and Labor Warranty Reimbursement

The state franchise laws allow dealers to submit for annual increases on their current warranty parts and/or labor rates. While each law is different, the laws all require a calculation of the retail rate the dealers charge the customer for non-warranty repairs.

Withum’s Dealership Advisory Team has over 15 years of warranty experience getting thousands of dealers  approved at retail rates for warranty repairs. We have extensive knowledge of the various state statute requirements, as well as the manufacturers’ tactics. Analytical software allows us to pinpoint the range that will yield the highest rate for each dealership.

Each parts or labor warranty submission is a flat rate of $7,500 per submission. When we prepare a parts and labor submission simultaneously, we package it at  $10,500 for the joint submission. We believe in fee transparency through a flat rate with no contingency fees.

We understand that time is money, and warranty and parts reimbursements are crucial to your bottom line. We will turn around reimbursement  submissions within 30 days.

Withums extensive knowledge of the state statutes and manufacturer tactics has resulted in a 100% approval rate for all warranty submissions.


5 Common Myths about Warranty Parts and Labor Reimbursement

  • The result will have a minimal impact on my bottom line. Wrong! The vast majority of dealerships will receive an increase of at least $50,000 annually, which pays for the cost of the analysis in about 30 days and serves as a perpetual revenue stream.
  • The manufacturer will seek retribution against me. Not true. We have been performing these analyses for a decade and have seen no evidence of a manufacturer seeking direct retribution against a dealer.
  • MSRP and retail prices are equal. MSRP is controlled by the manufacturer, which is significantly less than the retail price in many cases.
  • Manufacturers will refuse approval. Because we are familiar with the laws and the manufacturing process, our clients experience a high approval percentage.
  • Waiting is not costly. You are eligible for reimbursements now. Waiting keeps the money you deserve out of your pocket.

Client Testimonials

I highly recommend using Withum for warranty parts and labor submissions.  They handle the submission for all 50 dealerships in our group and make the process seamless.  Frank and his team have been doing these for a long time and they know how to get it done.  They are true professionals and experts in the field.

Larry Daugherty, Fixed Operations Director | Victory Automotive Group

Withum does a great job with all my warranty reimbursement needs. We use them for all our stores, and they get us big increases every time.  The process is quick and efficient.  We are super excited about the return on investment we have received from our relationship. Dealing with the manufacturer on warranty reimbursement submissions can be tricky and they have the experience to avoid any issues with the manufacturer.

Tully Williams, Parts & Service Director | The Niello Company

Several years ago, I was a little hesitant when it came to warranty parts reimbursement.  I was under the assumption that the manufacturer would just reject my submission for a rate increase.  But Frank assured me that they will take the necessary steps to get it approved.  And he was right.  The process was quick and easy and well worth the cost.  I have not only used Withum for both my dealerships but also referred many of my fellow dealers to them.

Allen Turner, Owner | Allen Turner Hyundai

Withum was referred to us by a member of our 20 Group and they did not disappoint. The entire process was really a breeze from start to finish. From the word go, Frank and team really took care of everything and completed the package to submit to the factory within a few weeks. They got me increases in both my parts and labor rates, adding thousands to my bottom line each month.

RC Rogers, General Manager | Zimmerman Honda

Contact Us

For more information or to discuss your business needs, contact Withum’s Dealership Services Team.


Francis X. O’Brien II


Braintree, MA

Stuart T. McCallum


Orlando, FL