WARRANTY PARTS MARKUP

[swilbs]

What is your warranty parts markup with GM. I was under the impression that it was standard at cost plus 40%. We have been told by third parties that we can go from Labor rate c to Labor rate a and also increase our warranty markup on parts. There is a company called ARMATUS that specializes in getting dealers more money from warranty. Just curious on what is going on out there in the real world.

Here is the site for ARMATUS

https://www.dealeruplift dot com/retail-warranty-reimbursement/#brxe-wsrivb

[2longinparts]

Yes. We used Armatus a few years back. We are getting 71% markup.

[smoyer]

varies by state, you have to apply for the bump, we have not been cost plus 40% for years I think we are at 103%

[joecool17]

93% markup here. We also have an increased labor rate. It is fully worth the investment. Just be prepared to be audited. It was possibly the best thing we ever did.

[swilbs]

Those that have done it what state are you in?

[joecool17]

Michigan. Another point to make is that they will pull data from your sales history to see what percentages you are getting from customer pay transactions. If you are discounting too much, it could play into how much they will go after. Initially, they tried to get us 113%. But, GM's attorneys counteroffered a few times and we settled at 93% and the increased labor rate.

[2longinparts]

Those that have done it what state are you in?

Indiana here.

[PartScott]

Kentucky here...currently getting 78%. As mentioned above, there will be an audit where they pull a set number of (consecutive?) customer pay repair orders and figure the percentage based on those. What really hurt us from getting a higher percentage was the fact that aftermarket warranty companies will only pay the list price on parts and when you're only getting a 25-35% discount from list on anything outside of GM, it doesn't leave much in the way of profit for us.

There has been talk about going through the process again to (hopefully) get another increase, but nobody has committed to that as of yet.

[smoyer]

Kentucky here...currently getting 78%. As mentioned above, there will be an audit where they pull a set number of (consecutive?) customer pay repair orders and figure the percentage based on those. What really hurt us from getting a higher percentage was the fact that aftermarket warranty companies will only pay the list price on parts and when you're only getting a 25-35% discount from list on anything outside of GM, it doesn't leave much in the way of profit for us.

There has been talk about going through the process again to (hopefully) get another increase, but nobody has committed to that as of yet.

we starting closing aftermarket warranty ro's not as cp so they would not count against is

[Gerry Laughlin]

Here in Ohio they don't count aftermarket warranty repairs.
Gerry