Warranty Reimbursement Submissions
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!
Warranty Parts and Labor Reimbursement Calculators
Get an estimate instantly in just a few questions with our Warranty Parts and Labor Reimbursement Calculators. Find out how much gross profit your dealership may be missing out on. Receive the warranty reimbursement you’re entitled to.
Improve Warranty Processing, Improve Revenue
In this Ward‘s article, Frank O’Brien, Partner, highlights the crucial role of the human element in the Warranty Submission Process. While AI tools are increasingly used for warranty parts and labor submissions, O’Brien emphasizes that humans can catch nuances that AI might miss, ensuring the overall success of the process.
The Accounting Mistake Costing Dealers Thousands a Month
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.
Frequently Asked Questions on Parts and Labor Warranty Reimbursement
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.
Warranty Reimbursement Panel
View this on-demand webinar where Withum and fellow dealership industry experts give an overview on the latest trends in warranty reimbursement.
Why Withum
Withum’s Dealership Services 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.
Client Testimonials
Contact Us
For more information or to discuss your business needs, please connect with a member of our team.
