Retail Warranty Reimbursements on parts and labor
You may be asking yourself what exactly are retail warranty reimbursements? These are payments made from OEM to the dealer in the automotive industry in regards to warranty work done on a car or vehicle, based on a set warranty dollar amount. This amount is negotiated when the dealer opens. It is important to note that the regulations vary from state to state, allowing dealers to receive a retail rate equal to the dealer’s “Customer Pay Door Rate”. In general you can apply for these rates annually, which can affect the maximum amount dealers are able to receive.
Regulations are always changing when it comes to warranty reimbursements. In fact, suppliers could gain no more than 40 percent service warranty parts markup until multiple dealerships received seven figure settlements. This forced manufacturers in many different states to work out the regulations, allowing possible warranty reimbursements at retail degrees.
There are many dealerships who have not exercised their right to retail parts and labor reimbursement, even though the law supports them. Most commonly this is due to the fear of causing tension between them and their manufacturers, or the dealerships simply are unaware of the state legislations that can benefit their dealership. No matter where you are in the United States, all 50 states now have laws that provide for retail-level reimbursement for dealerships that submit to the producers.
With retail warranty reimbursement assistance from QB business even small dealerships can receive up to an additional $10,000 monthly and potentially hundreds of thousands of dollars every year from these warranty reimbursements that will cover parts, retail markups, and even labor. There is even fixed op revenue that can bring up to $500,000 to your business. Don’t let your business miss out on these opportunities. Let the warranty reimbursement specialists at QB Solutions submit to your manufacturer the applications needed to receive a warranty labor rate increase and warranty parts markup so your dealership can increase its overall profitability.
The process of applying for these warranty reimbursements can be stressful and overwhelming. Between the paperwork and compliance, it is beneficial to trust the process to trained and qualified professionals like our team at QB Solutions. More often than not, manufacturers will try to push back in order to attempt to bargain for a lower rate than what was requested.The warranty reimbursement for parts and labor submission is a complicated process, and can waste valuable time and money if not handled properly.
Oftentimes dealerships will allow their supervisors to attempt this process on their own, but usually this leads to a regrettable situation that causes manufacturers to regret claims based on their extensive experience in finding defects that allows them to do so. The income loss of the hold-up created in doing so typically surpasses the charge by a mile. This is where QB Business comes in and helps those dealers in acquiring the most out of retail warranty reimbursement for their dealership.
There are times when a brand-new dealership principal comes in after a buy-sell, thus the repayment prices revert to the conventional supplier rate of expense and an additional 40 percent. What does that mean, exactly? A supplier then needs to re-submit in order to be compensated at retail levels for guarantee fixings. QB Business Solutions guides dealerships throughout the entire process, from preparation to compliance to the timing of claims submissions to get you the money you deserve.
How Can QB Help?
With over 25 years of experience, We are proud to be considered as the leaders of warranty reimbursement and claims processing in the industry. the expert team at QB Business Solutions is your trusted partner in maximizing your reimbursement. Dealerships can rely on our warranty claims specialists to not only maximize their price increase but also help expedite the submission procedure.
Don’t let the extra money you could be receiving for your dealership fly out the window! Take advantage of our highly trained specialists to ensure you receive your reimbursement warranties at the rates you deserve. Call QB Business Solutions today or take advantage of our free calculator to see how much money you’re leaving on the table!