Virtually all states require OEMs to reimburse dealers for warranty parts and labor at retail rates. However, OEMs will do everything in their power to pay dealers rates lower than those you are entitled to.
Based on our experience, warranty parts or labor submissions can increase gross profit by $5,000 to $10,000 a month and, in many cases, even more. Withum can assist in preparing the dealership’s submission to the manufacturer to ensure you receive the rates you are entitled to.
We analyze thousands of repair orders to identify qualifying submissions for a warranty parts rate increase. While manufacturers typically reimburse at cost plus 40%, we help dealers secure up to cost plus 90%, adding $75,000–$125,000+ annually to your bottom line.
Get a free estimate instantly online with our Warranty Parts Calculator.
State law requires retail-level reimbursement for warranty labor, but manufacturers often underpay. Our proven approach can generate thousands in additional gross profit each month.
Get a free estimate instantly online with our Warranty Labor Calculator.
Most dealerships use outdated or overly conservative parts matrices. We apply optimized pricing strategies based on thousands of submissions, resulting in immediate and measurable revenue increases across all parts categories.
Manufacturers often underestimate labor time. We submit data-driven requests for fair labor time multipliers, ensuring your technicians are correctly compensated for their actual hours worked.
The state franchise laws allow the dealer to submit for increases on their current warranty parts and/or labor rate annually. While each law is different, the laws all require a calculation of the retail rate the dealers charges to the customer for non-warranty repairs.
The vast majority of dealerships will receive an increase of at least $50,000-$100,000 annually, which pays for the cost of the analysis in about 30 days and serves as a perpetual revenue stream.
We charge a flat fee of $7,500 per submission (parts or labor). When a parts and labor submission is prepared simultaneous, we charge $10,500. No contingency fees!
Our extensive knowledge of the state statutes and manufacturer tactics has resulted in 100% approval rate.
We turnaround these submissions within 30 days!
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.
Withum’s DealershipServices 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.
In this episode of the Car Dealership Guy Podcast, listen to Frank O’Brien, partner at Withum, discussing about financial fraud in the dealership business, how dealerships can attract and retain technician talent, untapped warranty reimbursements from auto manufacturers, the clashing reality of EV mandates and consumer demand + much more.
View this on-demand webinar where Withum and fellow dealership industry experts give an overview on the latest trends in warranty reimbursement.
All fifty U.S. states now have provisions in their dealer franchise laws that require automotive manufacturers and/or distributors to reimburse car dealers at the same retail rates that the dealers charge to their customers for both parts and labor. Some of these laws have been on the books for over 15 years and, during this…
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