DealersEdge Professional Forums

Good morning all,

With the cost of oil and filter and labor exceeding the $35.00 paid to us how is everyone keeping their effective warranty rate on the plus side?
Right now I am selling my parts and labor at near cost as to not to have to write off any difference on the schedule.

Mark

Luckily many other things on the vehicles are failing but it is frustrating. Keep your General Manager aware so they can bring it up at dealer meetings.

For the $35 warranty reimbursement. I take $10 labor. Parts gets $25. If parts doesn't use all $25 (mostly when it is a 4 qt LOF) the remainder goes to labor. What ends up happening for the parts dept is they usually have to sell near cost.

We run the LOF / Rotate / MPVI through at a preset discount rate for labor, still make money. Parts are what they are at cost + 40%. We take whatever GM pays us $30 - $35 - $50, etc. and the balance gets billed to either NEW or USED sales department - depending on what the program is (CPO = used, etc.)

We discussed this when the program was announced. Sales generated the program so sales pays the difference.