Your Warranty Audit

Most dealerships are afraid when they hear the words warranty audit and with good reason. Warranty audits are rising, and most dealerships haven’t prepared. Warranty audits shouldn’t matter because your confidence in staff and processes are being done consistently. Trouble begins when compliance with the policy and procedure manual is never looked over and discussed to be sure of your compliance. It might be a management change or warranty administration person leaves, and so does compliance. With the fast pace of today’s environment in fixed operations, a major roadblock is time. Where do you find time to check changes to a policy manual or compliance? If you don’t make the time and you get your notice, your dealership is going into audit status, and it will become your major focus.

I have seen cases where the dealership is charged back hundreds of thousands for lack of attention to small violations from the policy. Technician punch times and management authorizations are two common ways to lose in an audit. Are you keeping night drop envelopes with customer signatures? Are your repair orders signed? What is your warranty standing with the manufacture? What are your training standards?  If you don’t know, find out! Have your management read policy and inspect for compliance often. Be sure your staff is handling warranty parts retention properly. Submit warranty quickly and deal with every reject correction within 24 hours. Look at warranty credit aging reports to be sure your submissions are being paid as they should. Taking the time and making the effort before dealing with an audit solves sleepless nights from your future.


Rob Gehring, President
Fixed Performance Inc. (Fixed Operations Consulting)
Margin Plus (Warranty Reimbursement Program)
Cell 419-282-1351
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