DealersEdge Professional Forums

The dealership owner just returned from a 20 Group meeting and told me that several dealers he talked to were charging retail parts prices on their factory warranty claims. Is anyone out there do this? How do you handle it and how do you get the factory to pay the retail price? We are a mult-line GM dealer in Minnesota.

Thanks!

Check with your state or local dealer association first to find out if Minnesota's franchise laws require retail reimbursement for warranty parts. Many states have this requirement but the factory folks have chosen to ignore it until they get sued.

If Minnesota requires retail reimbursement on warranty parts, usually your dealer will have to notify the factory in writing that he wants the higher markup. Ask the dealer association for some advice.

For more information, search the archives on this Web site. Use key words like retail warranty parts.

Good luck.

Actually, use "retail reimbursement" as your search criteria. There are about five articles.

With regards to retail reimbursement for warranty parts, write a letter to the manufacturer stating that you are requesting to be reimbursed at retail price for warranty parts. This letter will go into your corporate dealer file and probably will prompt a call from your MAM (for GM dealers) to your dealer. If and when your state rules in your favor for retail reimbursement, you will have already been on file with the manufacturer. In addition, at that point, the manufacturer may have to reimburse your dealer retroactive to your letter of request date. By sending this letter, you will not only place the factory on notice, but you may be setting your dealer up for a nestegg down the road. All dealers should generate this request letter TODAY!!!

[This message has been edited by NetProfits (edited 01-11-2002).]

[This message has been edited by NetProfits (edited 01-12-2002).]