Manufacturers are reimbursing dealers for their warranty parts and labor at much lower rates than the law allows. Based on our experience, warranty parts or labor submissions can increase gross profit by $5,000 to $10,000 a month and, in many cases, even more! Withum can assist in preparing the dealership’s submission to the manufacturer to ensure you receive the rates you are entitled to.
Our team has extensive knowledge of the various state statute requirements, as well as the manufacturers’ tactics. Analytical software allows us to pinpoint the range that will yield the highest rate for each dealership.
Schedule a call with a member of our team to receive your complimentary estimate.
In recent years, the term “unreasonable” has dominated the landscape of the warranty reimbursement space. Many dealers’ warranty parts and labor rate submissions have been adjusted or even denied based on claims by the original equipment manufacturers (OEMs) that the rates were “unreasonable” compared to the practices of other dealers in the market. Because warranty…
Dealerships can be valued using several approaches, including the income, market and asset approaches. Within each approach, various methods and assumptions may be considered. A dealership valuation typically includes tangible assets such as cash, inventory and equipment, as well as goodwill, more commonly known as “blue sky” associated with the dealership. This FAQ explores the…
Auto dealers that sell to New York residents should understand how the state’s waste tire management and recycling fee may apply beyond state lines. Here’s what out-of-state dealers need to know to stay compliant and avoid unexpected filing obligations. Who Must Collect the New York Waste Tire Fee? If you are an out-of-state tire service,…
Floorplan pressure. OEM scrutiny. Tight timelines. High stakes. Your auditor should understand that reality. 4 Reasons Why Audits Matter to Dealers What Makes Our Dealership Audits Different Dealers tell us they want the confidence that their financials will stand up when lenders, OEMs, or buyers ask tough questions. Many CPA firms perform audits. Few truly…
Franchise auto dealerships experienced an unusual period of profitability between 2020 and 2023, driven by supply constraints, shifting consumer demand and changing market dynamics. While many operating metrics have since moved closer to historical norms, the industry’s pandemic-era performance continues to influence how dealerships are valued today. The unusually strong earnings generated during that period…