Tag: Manage Warranty

Chrysler Loaner Policy Update

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To reduce the time the customer is in a loaner vehicle, Chrysler has implemented a new policy on Goodwill Alternate Transportation.

Two types of loaner reimbursement will now be allowed per visit: Rental and Pickup/Delivery.

When the customer has a loaner vehicle and cannot drop it off to the dealer when their vehicle is ready, the dealer can now drive the customer’s vehicle to them and pick up the loaner. We can claim for the loaner and a pickup/delivery on the repair order.

Make sure to mark this new option on repair orders that utilize this step.

Chrysler Bulletin D-22-10 Update

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This Warranty Bulletin supersedes Warranty Bulletin D-16-06.

The following repairs (labor operations) will no longer require pre-authorization through the

VDI Pre-Authorization Program:

• Sheet Metal (23-85-xx-xx)|

Any claims submitted for 23-85 will reject for Message Code (RP1 – This LOP must be authorized) and will require dealers to attach supporting photos to the claim for payment.

Note: Photos MUST include the VIN and MUST clearly capture the corrosion to support the repairs.

Refer to Bulletin D-22-10 for more information.

Floor Plan Reimbursement for Chrysler Stop Sale Tips

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Floor Plan Reimbursement represents the vehicle’s average daily allowance multiplied by the number of days the vehicle was in dealer inventory and not available for sale.

  • This reimbursement is limited to the number of days from the date of the stop sale to the date that the remedy was made available.
  • If the vehicle was received by your dealership AFTER the stop sale date, you will use the KZX date instead of the stop sale date.
  • For prompt Floor Plan reimbursement, please indicate the amount of days to claim the floor plan reimbursement in the comments of the repair order.
  • The Allowance per day varies depending on the Model and Year of the vehicle affected by the Stop Sale recall and can be found in the recall bulletin.

GM Cracks Down on SAVI scans!!

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This January, GM has been communicating the expectations of Dealers to have a process in place to scan every vehicle every time.

You have 3 days before and 3 days after the job card write-up to get the SAVI scan. To get ahead of this, please inform all service advisors of the dongle requirements and the 3 days before/after grace period to ensure a SAVI scan is pulled for every vehicle every time.

GM states that general exception requests going forward will not be granted per GM, and only rare/unique SAVI issues will be considered for payment moving forward.

 

Nissan DCAL Updates

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Nissan is taking a significant step towards empowering its dealerships and improving customer service by introducing tiered Dealer Claims Authorization Limits (DCAL). This new program grants dealerships greater autonomy in handling warranty repairs based on their demonstrated performance in key areas.

Three Levels of Empowerment:

The DCAL program categorizes dealerships into three tiers: Base, Standard, and Premium. Each tier comes with a pre-determined per-claim authorization limit, allowing dealerships to approve warranty repairs within that amount without seeking prior approval from Nissan.

  • Base Level: $2,000 per claim
  • Standard Level: $5,000 per claim
  • Premium Level: $7,000 per claim

Earning Your Tier:

Initially, all dealerships will be assigned to the Standard Level. However, following the next six-month performance review, each dealership will be evaluated based on the following criteria:

  • Fixed Right First Time Scores (F1): Prioritizing accurate repairs on the first attempt (20% weighting)
  • Warranty Claim Performance: Overall efficiency and accuracy of warranty claims (60% weighting)
  • Claim Processing: Timeliness in processing claims (10% weighting)
  • Claim Submission: Days taken to submit claims after work order completion (10% weighting)
  • Claim Suspension: Minimizing instances of claim suspensions (10% weighting)
  • Dealership Shop Specialty Certifications: Demonstrating expertise in specific repair areas (20% weighting)

Dealerships exceeding expectations in these areas will be eligible for promotion to the Premium Level, while those falling below may be assigned to the Base Level. This semi-annual review ensures continuous improvement and incentivizes dealerships to prioritize performance and customer satisfaction.

Benefits for Everyone:

The DCAL program offers numerous benefits for Nissan and dealerships:

  • Dealerships: Greater autonomy, faster repair approvals, and increased customer satisfaction can improve business performance and customer loyalty.
  • Nissan: More efficient claim processing, reduced administrative workload, and enhanced dealership performance strengthen the overall brand reputation.

Reference: WBP/21-020

Outsourcing Warranty Administration

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The Pitfalls of In-House Warranty Administration and Why Outsourcing Might Be the Answer for Your Dealership

In the fast-paced world of car dealerships, every minute counts. Between closing deals, servicing vehicles, and keeping customers happy, there’s often little time left for the nitty-gritty tasks like warranty administration. But neglecting this crucial area can have serious consequences, from costly chargebacks to frustrated customers and a tarnished reputation.

That’s where outsourcing warranty administration comes in. By partnering with a reputable third-party provider, dealerships can free up valuable time and resources, improve efficiency, and ultimately boost their bottom line.

The Pain Points of In-House Warranty Management

Let’s face it: warranty administration is a complex and often thankless job. It requires a deep understanding of manufacturer guidelines, meticulous attention to detail, and the ability to navigate complex paperwork. For many dealerships, managing this process in-house can be a major headache. Here are just a few of the common pain points:

  • High costs: Hiring and training a dedicated warranty administrator can be expensive, not to mention the ongoing costs of payroll, benefits, and technology.
  • Time-consuming: Warranty administration is a time-consuming process that can take away from other critical tasks, such as sales and customer service.
  • Compliance challenges: Staying up-to-date on ever-changing manufacturer warranty policies and procedures can be a challenge, leading to errors and costly chargebacks.
  • Lack of expertise: In-house staff may not have the specialized knowledge and experience to handle complex warranty claims efficiently.

The Benefits of Outsourcing Warranty Administration

Outsourcing warranty administration can alleviate these pain points and provide a range of benefits for car dealerships, including:

  • Cost savings: Outsourcing can be significantly cheaper than hiring and maintaining an in-house team. Providers often offer flexible pricing models that can scale to your dealership’s needs.
  • Increased efficiency: A dedicated team of experts can handle warranty claims quickly and accurately, freeing up your staff to focus on other areas.
  • Improved accuracy and compliance: Providers have the knowledge and experience to ensure all claims are submitted correctly, minimizing the risk of chargebacks.
  • Access to expertise: You’ll have access to a team of professionals who are up-to-date on the latest warranty policies and procedures.
  • Enhanced customer satisfaction: Faster claim processing and better communication with customers can lead to a more positive customer experience.

Finding the Right Warranty Administration Partner

Choosing the right warranty administration partner is crucial for success. Here are a few things to consider:

  • Experience and expertise: Look for a provider with a proven track record of success in the automotive industry.
  • Technology and resources: Ensure the provider has the latest technology and resources to handle your warranty needs efficiently.
  • Scalability: Choose a provider that can grow with your business.
  • Communication and customer service: Make sure you feel comfortable communicating with the provider and that they are committed to providing excellent customer service.

Outsourcing warranty administration can be a game-changer for your dealerships. By freeing up time, resources, and stress, dealerships can focus on what they do best: selling cars and keeping customers happy.

In addition to the benefits mentioned above, outsourcing warranty administration can also help dealerships:

  • Reduce the risk of fraud: Providers have the expertise to identify and prevent fraudulent claims.
  • Improve data analysis and reporting: Providers can provide valuable data and insights that can help dealerships improve their warranty programs.
  • Gain a competitive edge: By focusing on sales and customer service, dealerships that outsource warranty administration can gain a competitive edge.

If you’re a car dealership owner or manager who is struggling with warranty administration, I encourage you to consider outsourcing. It could be the best decision you make for your business.

Updated Rental Reimbursement Guidelines

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Nissan is committed to providing the best possible experience for your customers, ensuring they continue to enjoy the latest in Nissan styling and technology. To achieve this, they have updated their rental car reimbursement guidelines to encourage the use of Nissan vehicles through your own Nissan Rental Car (NRC) program.

Here’s what’s new:

  • NRC as the Baseline: Over 85% of Nissan dealers participate in the NRC program, offering a wide variety of rental Nissan’s. Therefore, NRC rental utilization will now be the standard for rental reimbursement rates. This incentivizes dealers to leverage the program and keeps customers within the Nissan family.
  • Nissan Vehicles Only: For dealers not participating in NRC, rental reimbursements will be limited to Nissan vehicles subletted from a third party. We believe this ensures customers experience the quality and innovation that defines Nissan.
  • Model Year Requirements: They only reimburse for the current model year and current model year minus four years for both new and used Nissan vehicles. This helps maintain a modern fleet and showcases the latest advancements.
  • Enhanced Documentation: To ensure clarity and accuracy, final rental invoices must be attached to work orders, including the Nissan VIN, mileage, rental days, and total cost.
  • Customer Signature Mandatory: A signature on the rental agreement or invoice provides confirmation of the rental details.
  • Special Circumstances: Exceptions to the guidelines require prior FOM approval with VCAN authorization. This ensures proper justification for exceeding the set limits in situations like unique customer needs.

Additional points to note:

  • These guidelines apply to goodwill and campaign-covered rentals within your dealer self-authorization limits (DSA).
  • Nissan will only reimburse the amount billed to the customer or dealer for the rental. Any additional costs are the responsibility of the customer or dealer.
  • Daily rental charges exceeding the listed guidelines are subject to adjustments.

They believe these updated guidelines will help you better serve customers and keep them driving Nissan. If you have any questions about the NRC program or the updated guidelines, please don’t hesitate to contact your DOM.

Remember, by working together, we can ensure that your customers experience the best that Nissan offers whenever they get behind the wheel.

Reference: WBP/23-013a

Warranty Trend Reports: Hinder or Help?

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Benefits of reviewing warranty trend reports:

  • Identify areas for improvement: Highlight weaknesses in processes like write-ups, technician training, communication, and administration.
  • Compare dealership performance: Benchmark against other dealerships and identify areas of strength and weakness.
  • Build customer satisfaction: Improve service quality by addressing miscommunications and replacing unnecessary parts.
  • Increase profitability: Reduce warranty expenses and optimize the work mix for better returns.
  • Avoid costly audits and reviews: Proactive improvement helps meet manufacturer standards and avoid penalties.

Unintended benefits of reviewing warranty trends:

  • Identify policy issues: Uncover policies that disadvantage both the dealership and customers.
  • Improve customer pay work: Identify and address inconsistencies in customer pay processes that mirror warranty processing issues.
  • Increase employee accountability: Establish clear expectations and hold employees accountable for their work.
  • Attract and retain talent: Invest in training and create a positive work environment to attract and retain skilled technicians.

Tips for using warranty trend reports:

  • Schedule appointments for write-ups: Allow customers to explain their concerns thoroughly.
  • Train and certify technicians: Ensure they are qualified to perform their assigned work.
  • Communicate effectively: Keep customers updated on the progress of their repairs.
  • Review repair history: Identify repeat issues and address them proactively.
  • Control workflow: Avoid overloading technicians and ensure they have the necessary resources.
  • Road-test completed repairs: Verify that all problems have been resolved.
  • Make customer satisfaction calls: Follow up with customers to ensure they are happy with the service they received.
  • Consider work mix: Analyze the impact of specialized work on your warranty trend.
  • Utilize third-party services: Consider partnering with a professional warranty processing company.

Overall:

While warranty trend reports can be daunting, they offer a valuable opportunity to improve your business. Reviewing these reports regularly and taking proactive steps to address identified issues ensures your service department is operating efficiently and profitably.

Streamline Your Warranty Claims: Required Documents for Faster Processing

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When it comes to seamless warranty claim management these documents will ensure the fastest resolution time:

  1. Warranty copy of the repair order
  2. Dealer hard copy with tech comments and time punches
  3. Vehicle information printout
  4. Rental agreements/loaner vehicle invoices
  5. Sublet bills
  6. Diagnostic printouts and worksheets with supporting information
  7. Customer pay repair orders for parts warranty claims

Learn how dealerships can retain warranty repair dollars with WPI’s President, Stephen Reiter.

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Stephen shares his best practices for saving money on warranty processing claims, and other important tips he’s learned along the way in his extensive 40+ year career. Check out the article in the new issue of Fixed Ops Magazine, available here.