DealersEdge Professional Forums

Without any notification our warranty parts reimbursement percentage changed from cost + 40% to cost + 41%

We did not ask for this and no one here was told in advance. The warranty claims just started not balancing. The Global Warranty page reflects the change. District manager knows nothing about it, and I cannot find anyone at GM who can tell me if it is a mistake or part of a program.

I don't want to change the computer if this is a mistake or only temporary.

Has your percentage changed?

nope ours is still 40% , be careful the general don`t give anything away

Your owners should be calling and taking them to court. Some of us have big mark ups. We are cost plus 87%

We are cost +81% here and have been for years. It takes a lot of work to get it changed. Have to send 100 consecutive customer pay RO's and certain parts are excluded from the calculation. It is a huge under taking and you or someone in your dealership would definitely be aware if you were trying to get it changed.

We are in Indiana, where it may be possible to charge a manufacturer "list" price. However, we have not attempted to do that or anything else.

I did check with another Indiana dealership and they were also moved to cost + 41% without notification or explanation.

I suspect something is about to be taken away and we have not been told about that either.

Are there any dealers in Illinois that have gone through this process?

KNGMPARTS wrote:Are there any dealers in Illinois that have gone through this process?

Keep in mind that the GENERAL can add a surcharge on every new car that is sold to your dealer to recoup the
Retail Warranty Parts Markup. The General sent their hotshot corporate lawyers to Springfield about 15 years
ago to make a change in the state's franchise law. And the jerkoffs in Springfield would rather take care of an
international corporation than see local Illinois business's profitable. But, I'm not bitter at all. So, you have to weigh the difference between your warranty parts "sales" and the new car surcharge. Most Dealer Principles want to be competitive on the new car sale end.

I have a question for the dealers that are getting retail mark up for warranty parts. Is that for ALL parts? Does that include big ticket items like engines and transmissions? We are looking at applying for it and looking at all the pros and cons. Don't see many cons.

stevejm71 wrote:I have a question for the dealers that are getting retail mark up for warranty parts. Is that for ALL parts? Does that include big ticket items like engines and transmissions? We are looking at applying for it and looking at all the pros and cons. Don't see many cons.

yes

Is the 100 Ro the only way to get Retail mark up for warranty?

We have two car lines which will make this time consuming to hit the 100 ro's