which can range from approximately $25-$450, depending on the part. However, there are currently 27 states that mandate both warranty parts reimbursement at retail rates and have a specific zero-cost parts provision. This statutory mandate requires a manufacturer to compensate for ALL parts at a retail mark-up, and therefore, only providing a handling allowance is in contravention of such mandate. Of course, these states have enacted a specific provision because of the manufacturer’s reluctance to pay on these parts. Nationwide, 49 states have legislation for retail compensation on warranty parts, and there is a logical argument that dealers are entitled to retail on zero cost parts, even if a specific provision is not in place. The concept is simple: If a warranty part is provided at no cost, the manufacturer is still required to compensate the dealer at their retail mark-up based on the cost of the part as listed in the manufacturer’s price schedule. The realization of this reimbursement can be anything but simple, depending on the manufacturer and state. While certain parts may be supplied at no cost due to legitimate factors, there is a growing concern among dealers that many high-cost parts are being supplied at no cost solely to circumvent paying retail mark-up. The Process Unfortunately, the process is all over the board depending on the manufacturer and state. Some manufacturers have procedures in place that allow the dealer to easily submit their claim and receive retail reimbursement. Of course, some manufacturers may be willing to pay on most zero-cost parts, but may balk with respect to EV batteries, which have been a huge point of contention nationwide. Many also seem to have nearly no formal process in place, and will often make it difficult to obtain information on how to properly submit the warranty claim. This may be by design in many cases. A good starting point for a dealer would be to reach out to their regional representative in the process of determining how to submit for retail reimbursement on exchange parts. Most likely, this will be some form of manual submission. A point of caution would be to ensure how the claim is characterized by the manufacturer, so that it doesn’t impact your warranty expense report (EPVS/CPVS), which could affect your warranty expense calculation and could ultimately lead to an audit. Reimbursement Example The following is an example of a radio that a particular manufacturer supplies at no cost. The wholesale cost of this part is $995, but the handling allowance is a measly $25. In many states, you are entitled to your full retail markup on ALL parts. Meaning, a dealer with a mark-up of 80% would net $771 in additional gross profit on this part alone. When you consider all exchange components, a dealer could be looking at many thousands per year in additional profit that could be put to good use, such as helping to pay and retain quality technicians. ON AVERAGE, UT DEALERS ADD $105,996 IN PARTS UPLIFT ANNUALLY ARMATUS HAS COMPLETED OVER 205 SUBMISSIONS IN UTAH ON AVERAGE, UT DEALERS ADD $95,100 IN LABOR UPLIFT ANNUALLY ARMATUS WORKS WITH 73% OF UTAH DEALERS OUR COMMITMENT TO OUR CLIENTS: ÙYou Won’t Lift a Finger: Armatus does all the work for you. ÙFully Contingent Fee: You only pay when you are approved. ÙSpeed and Accuracy: No one completes a submission faster. ÙOptimization: Proprietary software guarantees you the best result. (888) 477-2228 | info@dealeruplift.com WWW.DEALERUPLIFT.COM If you have already completed a submission in-house or with another vendor, you may still have significant opportunities to gain more. If we can’t improve your results, you owe us nothing. Between our scientifically proven optimal results, and our speed of processing, we will literally pay our own fee. Reach out today for a no-obligation evaluation of your parts and labor rates. PREFERRED PARTNER OF 15 UTAH AUTO DEALER
RkJQdWJsaXNoZXIy MTg3NDExNQ==