Warranty Increases

Currently, 38 out of the 50 states have some variation of the law which requires the manufacturer to reimburse the dealership for warranty repairs at the average rate of what the service department would charge the retail consumer. SDS has operated in 40 of the U.S. States.

Whereas manufacturers have always followed a common labor rate rule, almost exclusively, warranty parts increases are more specific to the individual state statue. Labor rate increases are now becoming more technical and are following these same standards. Whether it be a labor or a parts rate increase you’re seeking, Service Department Solutions can advise you up front on the new found monies that you are eligible to receive which go directly to the dealer’s net.


SDS has an extensive experience in receiving increases for dealerships in the United States. Here are several reasons why a dealership finds SDS attractive:

  • SDS will professionally analyze and submit your package in compliance with your manufacturer’s criteria and state law. It can get complicated. There are 50 states and 50 well-known brands. Everyone of these combinations have their own interpretation of the law to meet their needs. This makes it easy for a “Do It Yourself” manager to miss key points and dollars and not take 4 days away from the desk.
  • SDS crosses all your T’s and dots your I’s.
  • SDS does the work which in turn frees up your personnel to do those important tasks that you need them to do.
  • SDS eliminates the thousands of dollars missed in calculations and will not waste your 1 time yearly submission mandated  in many states because of not knowing the game. Do-overs aren’t allowed.
  • SDS does NOT tie into your DMS system, leaving the dealership secure.
  • SDS has a proven success record across multiple manufacturers and states.
  • SDS requires no up-front fees or payment until the manufacturer notifies you that the package is approved.
  • SDS will provide a reliable forecast of what your dealership will receive in new found monies. Many companies quote large returns based on inflated market areas. No vendor can provide an exact parts mark-up percentage or labor dollar increase until they actually review your repair orders.
  • SDS has a no risk policy. The package is only processed with your approval.
  • SDS will perform an analysis of the overall health of your service desk’s operation at no charge to you.
  • SDS has assisted state Dealer Associations in establishing statutes.

No Hassles – No Risks – No Up Front Fees – And You Only Pay Once, When Approved