The New GM Retail Warranty Reimbursement Provision Could Affect Your Bottom Line

While state legislatures have passed various laws governing Retail Warranty Reimbursement, many dealerships are still unaware of their legal obligations. While forty states permit dealerships to seek reimbursement for warranty parts, ten don’t. If you’re a new dealership, you’ll need to file a new application for warranty reimbursement and apply under the manufacturer’s rates.

The legality of retailer warranty reimbursement has long been a point of contention between dealers and manufacturers. While most manufacturers recognize this right, a few have implemented policies to frustrate dealerships’ efforts to obtain full reimbursement. The new provision aims to remedy this situation by establishing a market-based rate for warranty parts and labor repair. While a non-attorney can perform simple math and calculations, it cannot provide legal expertise.

GM is expected to appeal the decision. The attorney general’s office will rule on this matter later this year. Dealerships should prepare themselves for a potential increase in reimbursement rates, as they are a substantial part of their bottom line. Warranty Parts Reimbursement is an important part of dealership profits. While GM may appeal this ruling, dealers should plan to increase their reimbursement rates. This may be a hard decision, but it will significantly impact the dealer’s bottom line.

While the benefits of Warranty Reimbursement Rate are clear, the downside is that you’ll have to provide proof of purchase and a valid auto warranty. In some cases, you’ll need to provide proof of purchase to get warranty reimbursement, but you’ll get a free repair or replacement in most cases. Many companies offer warranty reimbursement with labor as well. In addition to reducing your costs, retail warranty reimbursement helps your business grow. Get in touch with Warranty Parts Company to know about warranty plans.

Dealerships deserve a fair reimbursement for warranty labor and parts. Dealerships can double or triple their current revenue through Dealer Warranty Reimbursement by following a few simple rules. Your dealership can double or triple its current warranty reimbursement revenue by ensuring all paperwork is accurate and complete. You’ll be glad you did! So don’t hesitate to contact a lawyer today. You can benefit from the expertise of an experienced law firm and obtain warranty reimbursement.

Dealers must submit 100 customer-pay repair orders within 90 days to qualify for retail warranty reimbursement. Dealers cannot request more than one increase a year. The rate is based on prevailing labor rates in the dealer’s relevant market area. Besides excluding routine maintenance repairs, warranty labor time includes diagnostic time spent with the manufacturer’s technical support hotline. The rate for repair time that qualifies as warranty labor is equal to the cost of repairing a retail vehicle.

In addition to providing legal advice on the best ways to approach warranty claims, our attorneys have developed webinars to teach dealerships the trade tricks. During the presentation, two representatives of our firm will discuss how to apply for warranty parts reimbursement and explain your legal rights and statutory protections. In addition to a comprehensive overview of your legal rights, you will also learn how to handle manufacturer pushback and other potential problems associated with warranty claims.

GM has implemented a nationwide system for warranty reimbursement claims. Dealers submit their claims electronically to a system called WINS. Dealers enter a repair order number, date of service, vehicle VIN, applicable labor operation number, and failed part number. The system will automatically review the dealer’s information and compare it to existing computer records for the vehicle’s VIN. The system then determines if the repair is covered under the warranty and the appropriate rate.

While darling’s method of refunding retail warranty claims is not illegal, it does have some significant flaws. Among these is that GM requires the dealership to retain the warranty parts for 15 days after purchase, and darling does not need to retain the warranty parts for that length of time. As such, darling’s is likely to appeal, and if the dealership wins the case, it will be able to receive the maximum reimbursements.