DealersEdge Professional Forums

Tennessee dealers. Do you charge the same rate for customer pay as warranty? ie: if your warranty rate is $85.00, is your customer pay rate based on $85.00?
I just learned that there is a Tennessee statue that requires dealers to have the same rate for customers as warranty. Anyone know of anything that changes that?

I thought it was the opposite ... the warranty rate (ie the factory's responsibility) has to be the same as a customer. The state normally doesn't care if customers are paying less than warranty, only that the factory is paying less than customers. The responsibility would be on the factory's side to up their reimbursement vs. the dealer needing to drop CP rate.

1. As a consultant we always use the warranty labor rate as our target effective labor rate, including quick services. If not there is the potential for a warranty labor rate concern.

2. If the customer labor rate must be the same as your warranty labor rate and the warranty labor rate the same as the customer labor rate the result would be the factory dictating your customer labor rate.

3. A lot of these concerns came about during the time the Factories required posting the customer pay labor rates on the repair orders and on signs on the service drive under the equaty warranty rate requests.