The bottom line is this - you have to pay somebody to process your warranty claims. You find, hire, train, and pay wages to an employee in hopes that they know what they are doing. Or, you outsource your warranty claims to a professional company like J&L that has the experience, knowledge, and resources to process claims correctly without question.
Outsourcing your warranty claims is similar to hiring an accountant to process your taxes. Sure, you could do it yourself, but it takes valuable time and there is always the, "what if" factor. What if I didn’t do it right? What if I’m not collecting every dollar? What if I am audited?
Here are some common scenarios we see dealerships face with their in-dealership warranty operations:
- Unaware - Sometimes dealers are under the impression that their warranty operations are running smoothly. However, upon closer examination, some are not. Warranty claims processing is not as easy as many think. Unless you have someone who has years of experience and has the aptitude to continuously keep themselves trained and informed, chances are your dealership is doing some things incorrectly.
- Disregard – Sometimes dealerships don't feel warranty is as important as other areas in the dealership and simply submit claims without regard to collecting all they can or following compliance procedures.
- Inadequate personnel – Sometimes dealerships struggle to find, hire and train effective warranty administrators. So the task of processing warranty claims is distributed amongst multiple service personnel or one individual is required to "wear too many hats.” Unfortunately, when this occurs, money is missed and mistakes are made. Also, the resentment of having to do a job that they are ill-prepared for causes even more problems.
- Inexperience – Sometimes
dealers have a full time warranty administrator, but they simply
may not be cut out for the job. Inexperienced warranty administrators
often times commit one or more of the following:
- Do not collect every warranty dollar
- Collect more than they are entitled to, exposing the dealership to expensive chargebacks
- Do not adhere to Chrysler Policy, potentially causing high expense areas triggering a Compliance Review
J&L Warranty Pros acts as a dealership’s entire warranty department. Our focus is on warranty, from assignment of labor operation codes to analyzing your warranty receivables schedule… we handle it all. It is a cost effective alternative to the challenging task of administering warranty claims in-house. In fact, we can usually increase warranty revenue enough to more than offset our service fee.
Dealerships are able to cut warranty expenses because there is no longer a need to hire, train and keep an in-house warranty administrator. Eliminating personnel turnover, training expenses, costly benefits, payroll taxes, disability, unemployment insurance premiums, social security, factory chargebacks, part chargebacks, and unpaid warranty claims which in turn may free up office space, computers and other resources.
Claims are no longer held up because your warranty administrator goes on vacation, falls ill, takes family leave, or is too overwhelmed.
Compare
in-dealership warranty claims processing vs. J&L Warranty
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Contact a Claims Processing Team Member at 800.852.6298 or click here to express interest online >>