Warranty Outsourcing Cost

[LRB]

Hi, our dealership is going to have to outsource our warranty work for a while since our warranty administrator will be taking a leave of absence soon. We are searching for the best rate for good work. Anyone have an idea of a fair price for this?

[tjsmith]

Dont know about rates, but I knew a dealer a while back that used J&L Warranty Pros

[btk]

Depending on total warranty sales-parts and labor, depending on if you are going to pay them a monthly fee or not, i have seen anywhere from 2% to 4 % of monthly paid claims

[robc]

I totally get cost is an issue but I am not sure the cheapest rate is going to live up to your expectations.

That being said, the cheapest option is for a local/regional rent-an-administrator that might swing by once a week and get your claims submitted. This of course will be as successful as the quality of person you have in your area.

Second would be a large national firm, who are competitive because they typically have a very efficient process.

Last would be a large regional firm.

I thought the nationals were pushing past 4%, depending on size and makes. Let me know your franchises/location and I'll give my recommendations

[franks283]

While the biggies (J&L) etc. are all great, how about talk to factory reps and other dealerships and see if a warranty person will take a second job for that short while. I've done the temporary warranty thing and it worked out good.

[john]

I've audited WPI customers as a service to the dealer and found their work to be excellent.

You really want a professional service that turns warranty money around quickly but covers all the bases in makeing individual claims immune to charge-back.

I agree with the 2% to 4% number based on volume.

John
pika68@aol.com

[JCarl]

We just laid off our warranty administrator and signed on with a outsource. Automotive Warranty Network. www.AWNINC.com - reasonable rates, days to receipt is down and have not had a condition code on the 126 report in 4 months.

[Old Irish]

I used WPI and they were fine.

Just remember, though, that they can only do part of the job. *Somebody* at the store still has to assemble and edit claims to submit, post credit memos, help them with corrections/rejects, file the paperwork, pull warranty parts, etc etc. So....start planning for all that NOW !

In our case nobody realized just how must the "warranty guy" did until he was gone. I reckon a lot of us have realized the same thing *after* somebody leaves the store

As to your specific question, I can't remember what they charged but it was about the same as we were paying for an on-site admin. We eventually went back to a full time warranty admin.

Cheers
DD

[john]

Ford dealers need to be on their toes on this one. Whoever you get to process claims, they need to be sure claims are submitted within 30 days of repair completion. The claim drops dead after that and there is no appeal.

Other dealers want to do the same for quick money turn-around.

Make sure any old claims are submitted and that your claim files are current. Any delay coulds cost big money.

In light of payroll rquirements in some dealers, I'm not sure a weekly visit be a traveling warranty person is such a good idea.

Shop around for options - there are many different ways to get warranties and payroll done at a reasonable price. WPI and J&L have been around a long time and know their stuff so that might be a good place to start looking.

John
pika68@aol.com

[millan123ta]

TBF Enterprises, Inc. and Jupiter Warranty Management go beyond basic warranty administration. We manage warranty processing from start to finish. Only this level of automotive warranty outsourcing relieves your management from the activities that steal time and energy from more profitable customer pay activities.