Fixed Ops Magazine - 2021 Vol18 03 - 70

Introduction
For decades, the relationship between car dealers and manufacturers has had its challenges. From the
perception of the dealer, the manufacturer continually attempts to " cost-shift, " lowering their expenses
and increasing the dealers' expenses.
.
Over the years, many states have passed franchise
protection laws in order to balance the unequal bargaining
power that exists between individual dealers and their
much more powerful franchisors. So far, 47 states and
counting have passed legislation that has corrected a
specific type of cost transference that affects both dealers
and consumers alike: market-rate reimbursement for
warranty claims.
Why You Should Consider
an Expert for Your Warranty
Labor Rate Submission
In the past, dealers had been forced to accept below market
fixed reimbursement, which they, as well as the paying
consumer, had to subsidize. Today, however, the good news
for dealers is that, based on these state-specific laws, they
are entitled to collect retail from their manufacturers for
parts used in, and labor performed on, a warranty claim. In
the case of parts, retail is not the list price or MSRP; instead,
retail is what your customers pay you for a warranty-like repair.
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(866) 256-5082(888) 477-2228
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Fixed Ops Magazine - 2021 Vol18 03

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2021 Vol18 03

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