DealersEdge Professional Forums

I heard of another dealer charging gm full retail pricing on all warranty repairs/parts. Is this true? Anyone else ever here of this or taking advantage of it?

There are some states that passed laws that force manufacturers to pay MSRP. That's why GM lowered list price a few years back on pretty much everything and why they set list prices for transmissions and engines.

With Chrysler we have to submit paperwork similar to a warranty labor rate increase. There is a difference between MSRP and retail.

cville1987 wrote:There are some states that passed laws that force manufacturers to pay MSRP. That's why GM lowered list price a few years back on pretty much everything and why they set list prices for transmissions and engines.

Anyone know exactly which states qualify or anywhere I can confirm or get more information, I am a pa dealer.

PA is one of them.

It's a bit of a process to get on board. We have been in the process for several months.

I don't believe it will be MSRP, but more along the lines of being comparable to what you have proven to obtain on customer pay repairs.

We have been required to submit, in sequence, a couple hundred repair orders to establish a labor rate and parts pricing baseline.

Hoping it won't be much longer.

jdpetey wrote:
I don't believe it will be MSRP, but more along the lines of being comparable to what you have proven to obtain on customer pay repairs.

We have been required to submit, in sequence, a couple hundred repair orders to establish a labor rate and parts pricing baseline.

Hoping it won't be much longer.

We did the same in NC, we get parts cost plus 55% but every dealer is negotiated by GM.

We did it here in Mass too

I know it got denied 2 or 3 times before GM finally agreed to it

Ok sounds great anyone have any info on where to begin? Who I need to contact?

Your DMA would be the mediator. But it needs to be from the top, your DP or GM need to formally initiate. This will be a convoluted, frustrating process, and probably tick off your DMA bcause GM Legal gets involved. There's also no going back from what I've heard, and any increase requires the same act of Congress.

Good luck

PS. I'm still glad we did it though, it's been a great shot to the bottom lines in Parts and Service. Remember even cost plus 50% represents a 25% increase over cost plus 40.

LOWAIRD1964 wrote:Ok sounds great anyone have any info on where to begin? Who I need to contact?

I would suggest contacting someone you know at another dealership in your area that is already getting retail on parts and ask who they used.

We paid a company to go through our customer pay RO's to get a COD average.

There are some law firms that specialize in this listed on the internets.