warranty business dropping

warranty business dropping

Postby btk » Thu May 24, 2007 4:34 pm

Heres my situation -Honda franchise-warranty ONLY gross and ro count down 30 %. We sell the same amount of new cars as we always did-nothing internally has changed.
Warranty drop -district avg- 3-8 %. we sell alot of cars on the internet but I am told- we are pumping in the same amount of units as we used to. This trend I noticed for about 9 months now-is anyone else seeing this? What am I missing? Any ideas on why the significant drop compared to dealer avg?

Thanks
btk
 

warranty business dropping

Postby robc » Thu May 24, 2007 9:00 pm

30% doesn't sound right, but the 3-8% does and here in NJ so far for the first 4 months I've seen an average drop of 10-12%. CP is down too, but only 3-5% -- internals are up, but not enough to offset the overall impact. The first of the year is notoriously the slow warranty period, but this is year-to-year comparisons of the month.
robc
 

warranty business dropping

Postby Gran Sasso » Fri May 25, 2007 12:24 am

If you are down 30%. People hate your dealership.
Gran Sasso
 

warranty business dropping

Postby Jim Steele » Fri May 25, 2007 8:18 am

I've heard that the only stores seeing an increase in warranty work are Toyota dealers.
Jim Steele
 

warranty business dropping

Postby MAGPIE » Fri May 25, 2007 2:53 pm

Not in northern California, at least. Our (stand-alone Toyota, Bay Area) warranty business is off 20 percent from this time last year. And, we hear that from the factory, too.
MAGPIE
 

warranty business dropping

Postby AKTOYPM » Fri May 25, 2007 3:10 pm

Last year we had bookoo ball joint campaigns.
hundreds and hundreds at $250.00 (parts alone)
That has dried up, so we are running a little slim too.
AKTOYPM
 

warranty business dropping

Postby ZFAN24 » Fri May 25, 2007 4:11 pm

-Nissan-

on the warranty side:

I'm looking at a March report right now. Warranty sales up 29%, warranty ROs up 8%, $/RO up 19%, warranty parts up 135%, warranty parts $/order up 118%.

People are still buying cars, and they're still breaking. 30% is a big drop, there's a reason for it somewhere. Those numbers have been that way for 9 months? Who is submitting your claims, and are they getting submitted efficiently? Are they getting paid, or do you have suspended claims floating around? It really sounds like something is amiss somewhere.


on the cpay side:
Customer pay labor up 36%, RO count down 5%, labor/RO up 44%, parts $/RO up 3%.
ZFAN24
 

warranty business dropping

Postby GMFXDOPSMGR » Mon May 28, 2007 8:33 am

NORTH FLORIDA..TALLAHASSEE

We are a GM dealer, Cadillac, Hummer, Pontiac, Buick & GMC.

My retail is up 8%, warranty is down 37% warranty RO count is down from 1615 to 1440 year to date to same last year. Internal is down dispite increased accessory sales. Retail is tracking just as we projected and is helping hold overall gross.
We have more "service updates" less recalls.
GMFXDOPSMGR
 

warranty business dropping

Postby 69mach1 » Tue May 29, 2007 4:41 pm

GMFXDOPSMGR,
dont forget about GM's big push on oil change intervals that should boost your retail figures
69mach1
 


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