Common Issues Found During A Warranty
Consultation
Warranty claims are a very important source of revenue for dealership
service departments. While many dealerships are fortunate to
have a well trained, competent warranty administrator who stays
on top of all the changes in the warranty policies, programs,
and the proper submission of warranty claims, we have found
that many dealerships are unaware of very important warranty
information. This can
not only subject them to costly warranty charge backs, but also
prevents them from claiming warranty dollars they are allowed.
Below is a list of just a few of the problems we see
in warranty administration through our consulting and warranty
workshops.
- Quality Parts Return- Specific parts must be returned
for inspection. Dealers have 60 days to return the parts requested. If the
parts aren't returned in the allotted time, the dealer is charged back.
Too many dealers have chargebacks due to the fact that they aren't paying
attention to these requests. We have seen dealers lose over a thousand dollars
on a
single claim.
- Sublet processing allowances - Chrysler offers a labor
administrative allowance on qualified sublet repairs. This extra labor time
is only paid to the dealer if they submit for it. We have uncovered many
dealerships that do not claim this extra labor time thus missing out on
hundreds of dollars.
- Add On repairs not authorized - There are numerous situations
that fall under the category of add on repairs and they must be properly
approved and authorized by service management. Add on repairs are frequently
the most charged back claims on warranty repairs by auditors.
- Dealer self authorization not properly documented - Service
management is responsible for claim authorization. Every authorization code
must be properly explained on the repair order and many dealers aren't complying
with this rule.
- Insufficient technician documentation - Whether it is a clear and concise cause of failure or a missed transmission diagnostic checksheet, Chrysler has specific requirements for certain repairs and the omission of any of these requirements makes the claim subject to chargeback.
Fortunately, all of these issues can be corrected before it
is too late. With some additional
training and an honest effort from your employees, a dealership
should have no problem becoming completely compliant.