Using Retail Warranty Reimbursement To Regain Your Profit

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As a dealership owner or manager, one issue you need to deal with is warranty claims management. With everyone scrapping for profits these days, you need to consider the best use of your time, talents, and resources, especially when it comes to retail warranty reimbursement. When speaking of profits, it is so tempting to try to do the warranty claims processing yourself in order to save a buck, but that strategy can backfire. Because professional third party organizations deal with warranty claims every day, they understand the process, the profit margins, and the technological tools needed for successful and speedy retail warranty reimbursement, and will likely get you more money and at a speedier pace than you can do yourself.

The Process

The process of warranty reimbursement is not just checking off boxes on a form, but is a set of events that are both tedious and intricate. The process can also change on a dime, often in the middle of your retail warranty reimbursement, and this will leave you frustrated and back to square one. There are many steps to the process that are best left to a professional, and the warranty claims expert needs to be able to:

  • Gather data
  • Use technology to ascertain analytical database
  • Submit the paperwork
  • Create optimal rate
  • Deal with legal jargon
  • Handle rebuttals

It stands to reason that someone who does warranty claims processing each and every day would be more well-versed in the process (and therefore more successful) than a dealership manager who has to halt all of his “normal work” in order to do the warranty claims processing.

The Profit

In your quest to increase your profit margins, look to retail warranty reimbursement to bump up your numbers. You can submit for warranty labor reimbursement as well as warranty parts reimbursement. Dealer warranty reimbursement can certainly help your dealership regain your profit, but to do warranty claims processing will not be an easy task and will take you away from some of the other hands-on work you need to be doing at your dealership. Many small dealerships want to white knuckle the warranty claims processing process themselves, whereas a professional can do the claims warranty processing more efficiently and with a higher percentage of profit.


In order to make the most of your claims warranty processing, old databases will not help your cause. You need an optimized analytical database that will give you up-to-the minute rates and percentages pertaining to your warranty reimbursement at retail rates, as well as your warranty labor reimbursement and warranty parts reimbursement. A warranty management system should be employed to understand the rates, percentages, and profit margins. It makes sense, therefore, to use a professional that deals with these numbers all the time rather than a dealership manager or employee who doesn’t. In order to make the most of your warranty claims processing, a professional will garner you a higher warranty reimbursement rate with less trouble for you.

If you want to regain your profit through dealer warranty reimbursement, hiring a well-versed third party company to go through the warranty claims processing for you is the smartest thing you could do. Although you might think you are saving money by doing it yourself, there is just no way to match the expertise of a dedicated company in the warranty reimbursement game. Warranty claims processing is tedious at best, and the laws and dealership rules can change right in the middle of your warranty claims, making the process even more difficult. With a revered, professional third party warranty claims professional on your side, you will be able to regain your profit while keeping your daily business model going smoothly.

For more info or to schedule a consultation, contact us today at 1-800-970-4701


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