Most dealerships are reimbursed for warranty parts and labor at a fraction of what state law actually entitles them to. This free guide shows you where the gap is — and how to close it.
WHAT’S INSIDE:
Here’s how it actually works. Say your retail labor rate is $225/hour. A water pump takes two hours — that’s a $450 repair for a customer. The same water pump under warranty? The manufacturer might reimburse you $175/hour. That’s a $50/hour gap.
Now scale it: at 10,000 warranty hours a year, that gap alone is $500,000 — for work your techs already performed.
Parts tell the same story. You might mark up customer-pay parts 90%, but warranty reimbursement is often capped near 40%. Combine labor and parts, and a single store can leave over a million dollars on the table every year.
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