Issue Date: Warranty Administrator for Dealers Oct 15, 2010, Posted On: 10/15/2010
Retail-rate warranty reimbursement comes to Washington Washington State enacted an amendment to its State franchise law in July to allow car dealers to request a "retail rate" on parts and labor used in warranty claims. For a recap, "retail rates" are not the same as "dealer list" programs that several manufacturers offer. While "dealer list" normally offers a mark-up of about 67%, making it substantially better than the typical 40%, it does not come close to a retail rate average of 80-90% found in stores using a moderate pricing matrix.
Some makes have outright steadfastly refused to approve such requests (forcing the unproductive lawsuits that eventually follow), most grudgingly grant such requests. Ford is by far the easiest manufacturer to deal with when making a submission, with BMW, Hyundai, and Nissan being a struggle.