When acquiring a dealership, buyers conduct extensive due diligence, reviewing financials, operations, real estate, customer retention and manufacturer performance. Yet one of the most overlooked opportunities for increasing long-term profitability is retail warranty reimbursement. As dealership acquisition activity continues to accelerate, buyers should prioritize a retail warranty reimbursement review within the first 60 days of ownership. According to the latest Haig Report, 139 dealership rooftops changed hands during the first quarter of 2026 — a 39% increase over the same period in 2025 — with private buyers completing 96% of acquisitions. At the same time, Kerrigan Advisors reports continued strength in dealership buy-sell activity, driven by confidence in the long-term profitability of franchised dealerships. Today’s buyers are asking not only what they’re purchasing, but also what revenue opportunities the previous owner failed to capture. With front-end vehicle margins returning to historical levels, fixed operations has become one of the most valuable drivers of dealership profitability. Warranty reimbursement plays a critical role in that equation because it allows dealers to recover compensation that more accurately reflects their retail labor rates and parts pricing. Unlike increasing vehicle sales or expanding service capacity, improving reimbursement requires no additional customers, technicians, service bays or advertising. Unfortunately, many dealerships delay submitting reimbursement claims or continue operating under outdated labor and parts rates established years ago. Rising technician wages, increasing retail labor rates and changing state statutes often create significant opportunities for new ownership groups to improve reimbursement almost immediately. A comprehensive review should answer several important questions: • When were labor and parts reimbursement rates last updated? • Is the dealership eligible for a new submission? Why Every Dealership Acquisition Should Begin with a Retail Warranty Reimbursement Review BY JORDAN JANKOWSKI Chief Operating Officer, Armatus Dealer Uplift 23 California New Car Dealer Quarterly
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