Warranty Charge Back
Research by AAL has revealed the average annual charge back, by one manufacturer alone, amounts to over £23,000 per dealership. At the dealership where AAL systems have been implemented, the “charge back” for this particular manufacturer was zero. That is not to say there were no errors identified at audit but the percentage number of errors were minor, were not repetitive and in the circumstances, did not “qualify” for a charge back.
Manufacturers now welcome outsourced warranty processing, simply because it is in the interests of the dealership to maintain policy and procedures to prevent manufacturers’ charge-back fees, with strict Manufacturer’s controls in place only genuine warranty claims are processed
Without sufficient systems and audit facilities in place, it is inevitable, charge-back costs will continue to be an unquantifiable financial risk for businesses.