WHY MORE DEALERS ARE SAYING “NO THANKS” TO AUTOMATIC INCREASES CPI-based programs are designed to appear convenient — but convenience often comes at a steep long-term cost. Here’s why dealers are increasingly rejecting automatic increases in favor of statutory submissions: • Larger Increases: Statutory rates reflect actual customer-pay averages, not arbitrary manufacturer formulas. • Greater Profitability: Higher rates mean more gross per RO, better technician retention and improved service absorption. • Dealer Control: You decide when and how to pursue your rate — not the OEM. MAKE AN INFORMED CHOICE: YOUR BOTTOM LINE DEPENDS ON IT If you’re being asked to opt into a CPI program this year, pause and evaluate your options. In most cases, a statutory labor rate submission yields significantly higher returns — and safeguards your right to be fairly compensated for the work your team performs every day. Choosing how you increase your warranty labor rate isn’t just a paperwork decision — it’s a strategic one that directly impacts your dealership’s profitability. Don’t let convenience come at the cost of control or revenue. Before locking into a long-term CPI program, explore your statutory rights and understand what your customer-pay data truly supports. With the right guidance and a data-driven approach, you could be earning significantly more — month after month. At the end of the day, in most cases, the smarter path is the one that puts you, not the manufacturer, in the driver’s seat. Jordan Jankowski is the chief operating officer at Armatus Dealer Uplift. He has played a key role in consulting on 21 warranty reimbursement laws across the country and is widely considered a subject matter expert in this highly technical arena. Jordan manages a team of over 60 people, who produces thousands of retail warranty reimbursement submissions each year. To learn more about Armatus, visit www.dealeruplift.com. 19 Arkansas Auto Dealer
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