Backing Technicians and Service Departments With 2025 Virginia Legislation Don’t pay the same labor rate as retail LEGISLATION Artificially reduce the amount they claim is required for labor FAIR REIMBURSEMENT TO BUSINESSES FOR WARRANTY & RECALL WORK When a vehicle needs a part or technology fixed that is under an auto maker’s warranty or a recall, the customer pays nothing and the dealership is reimbursed by the manufacturer. That’s where problems start for small businesses. MANUFACTURERS MANIPULATE AMOUNTS PAID FOR WARRANTY AND RECALL REPAIRS. THEY: HOW DOES THIS IMPACT DEALERS? They are forced to pay their technicians less for warranty/recall repairs, or supplement their pay and allow the manufacturer to shift the costs of their product quality issues to the dealer. HERE’S HOW VIRGINIA FIXES THE PROBLEM. VADA’s legislation brings Virginia in line with other states, adjusting the law to rely on a statutory calculation to determine a retail amount that manufacturers reimburse dealers. The bill also addresses pricing parts manipulation, prohibiting auto makers from reducing the price parts used in a recall repair. The part will be pegged to its highest price in the last 12 months. HOW DOES THIS IMPACT CONSUMERS? Higher prices when paying retail. Auto technicians should be paid for increased time spent communicating with manufacturers on increasingly complicated repairs. Dealers should also be quickly compensated when required by the manufacturer to provide a rental vehicle to customers during warranty/recall repairs. Our bill has no impact on consumers, and in fact ensures costs are not passed on to Virginians. Control part prices and alter them to reduce costs As the unified voice of Virginia’s franchised auto dealerships, VADA’s top priority is advocating for policies that support businesses, employees and consumers. This means we are active every year in the Virginia General Assembly, which convenes each January. VADA maintains year-round relationships with lawmakers on both sides of the aisle. Sometimes, our legislation is focused on the dealership operation as a whole, as it was in 2022 when we advocated for stronger protections to the franchise system from direct-sales models. Other times, we hone in on an issue on the sales side or back in F&I. This year, we are supporting an issue with service teams as we work to pass statutory changes in how dealers work with manufacturers on warranty and recall repairs. The following is an overview. 10 Virginia Auto Dealer
RkJQdWJsaXNoZXIy MTg3NDExNQ==