You can apply for a warranty reimbursement from GM by meeting certain conditions. This article will explain what the standard Warranty Reimbursement Rate is, the Darling’s method and the uniform parts reimbursement rate are, and the Conditions for getting a warranty reimbursement. This article will help you determine if your car qualifies for a warranty reimbursement. Then, you can submit your request. However, you must first get approval from GM before you can start receiving your warranty reimbursement.
GM’s standard warranty reimbursement rate
GM’s standard warranty reimbursement rate is calculated based on the average cost of parts and labor at authorized GM dealerships. In 2003, 1.9 million claims were approved from GM’s New York dealers, a total of $183 million in reimbursements. Currently, GM reimburses approximately 90% of warranty claims. However, there are a few exceptions. In some instances, a dealer may receive a larger reimbursement than the average cost of parts and labor.
GM offers two levels of coverage: Silver and Platinum. Silver coverage is comparable to the powertrain warranty. Silver covers electrical systems and enhanced electrical systems, steering, brakes, and air conditioning. Platinum coverage extends to wear and tear breakdowns. Each level of coverage is tailored to the individual needs of each owner. A car with a higher warranty value can be purchased for a lower price than a similar one without a warranty.
GM’s Darling’s method
GM’s Darling’s method of warranty reimbursement would require participating dealers to perform warranty repairs using a uniform methodology. For example, a standard markup of forty percent would apply to parts and labor costs. But, Darling’s rates would be higher than GM’s uniform nationwide reimbursement rates. These differentials are often determined by a menu system or matrix markup system. In addition, the cost of parts and labor would be based on the manufacturer’s suggested retail price.
A single payment under section 1176 is not required. Moreover, a two-step system used by GM to reimburse dealers is not unlawful. Additionally, Darling’s does not dispute GM’s contention that its method of warranty reimbursement is the most cost-effective. However, disallowing charge-backs within the statutory time frame would result in increased labor costs for GM and would ultimately be passed on to consumers.
GM’s uniform parts reimbursement rate
Dealers in Maine are entitled to receive reimbursement for uniform parts rates based on their wholesale purchase price, not on the cost of the parts. In Maine, GM has devised a two-tiered reimbursement system. First, dealers submit WINS claims for uniform parts reimbursement, and second, they submit supplemental claims for the difference between the uniform parts rate and the retail rate. But what is this rate?
Moreover, the law also sets the basic parameters for the processing of warranty claims. The aim is to equalize the cost of warranty and nonwarranty repairs. Neither of these goals is achieved entirely, but the uniform parts reimbursement rate strikes a reasonable balance. Dealers can collect a substantial share of reimbursement within a short period of time. This initial step will enable dealers to collect a significant portion of the reimbursement in a timely manner.
New laws limit or deny warranty reimbursement
Suppliers must examine their warranty reimbursement policies and practices in light of new laws. These laws limit or deny warranty reimbursement of parts and labor in some situations. Manufacturer warranties generally negate implied warranties. If a company is unable to honor a warranty, it may not be obligated to reimburse a customer. Manufacturers may also limit warranty reimbursement by allowing dealers to make automatic renewals, which constitute a “new” contract.
In Illinois, HB 3940, effective July 30, 2021, contains a variety of changes regarding supplier warranty reimbursement obligations. Among other changes, the law clarifies that recall and stop-sell repairs are covered under warranty reimbursement regulations. The law also prohibits cost recovery fees and surcharges, mandates reimbursement at retail labor rates, and establishes a process for suppliers to challenge dealer rates. Furthermore, the law limits the ability of suppliers to enter into agreements with a majority of auto dealers.