Page 11 - Summer 2025

revealed they had missed an annual submission window the previous year, costing them over
$200,000.

Common Pitfalls and How to Avoid Them

• Documentation Errors
o Solution: Implement a QC step to verify codes and line items before
claim submission.
• Overlooking OEM Programs
o Solution: Always calculate reimbursements on full retail equivalent rates,
regardless of any OEM “discounts.”
• Missed Deadlines 11
o Solution: Use automated reminders and assign accountability for each state’s
submission calendar.
• Operational Gaps
o Solution: Train technicians and advisors on upsell and coupon documentation
so no value is left uncaptured.

Turning Warranty Reimbursement into a Profit Center
By treating warranty administration with the same rigor—and proactive cadence—as your sales
process, your dealership can transform a “set-and-forget” task into a strategic profit driver.
Educational initiatives—such as regular team training on submission best practices, quarterly
audit schedules, and ongoing benchmarking reviews—will reinforce a culture of accuracy and
continuous improvement.

Now is the Time
In an environment where sales volumes and incentives fluctuate, warranty reimbursement remains
a stable, entitled revenue stream under your control. By committing to proactive audits, diligent
documentation, timely submissions, and ongoing market and statutory monitoring, dealers can
capture every dollar owed—and buffer their fixed-ops departments against broader market
uncertainty.

Now is the time to formalize your warranty processes, embrace best practices, and
ensure that no reimbursable margin slips through the cracks.

On The Move 2025