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Mail-In Audits
Since the start of the Warranty Counseling Process in
1996 many dealerships have had a rude awaking. Numerous
dealerships are finding themselves going through the
agonizing stages of Ford’s “Warranty Counseling
Process”, due to abnormally high warranty trends.
Unfortunately, it takes most dealerships a substantial
financial loss and a years worth of reoccurring
headaches to realize the importance of preventive
maintenance. Dealerships must remember , they are
responsible for fixing the customer’s vehicle concerns
and provide Ford with the necessary requirements in
supporting the repairs performed. The lack of
knowledge in warranty administration is the major reason
for chargebacks to a dealership. Most of these
administration errors could be drastically reduced if
dealers took a Pro-active vs. Re-active approach.
Summers Dealers Services (SDS) has helped many
dealerships exit the Warranty Counseling Process. We
have conducted many warranty reviews for concerned
dealers to try and find out why they are having abnormal
warranty trends. Again, what we found is that poor
warranty administration is the leading contributor to
abnormal warranty trends. We believe this condition
exist because most dealerships do not have one person
from the outside review how your employees have been
enforcing the rules set by the manufacturer.
Another area of concern that no ones like to mention is
false and fraudulent claims collection. Some dealerships
find out that their employees are not as honest as they
thought. When you hire your personnel you never think
they might take advantage of the system and put your
dealership in jeopardy. Although the ACESII system has
made impressive strides in helping to reduce fraudulent
activity, a knowledgeable employee can easily manipulate
the payment system. The best way to stop this type of
activity is to have a random Warranty Claims Review to
keep tabs on your warranty claims collection. To produce
outstanding employees you must invest money in proper
training and put them under constant scrutiny.
Time after time, we hear dealerships indicate that they
have no outstanding claims and all the repair orders are
getting paid in a timely manner. This is great, but
dealerships must be able to recognize the hidden
dangers in warranty claims collection. Just because the
ACESII payment system is paying all the repair orders,
this does not mean that your responsibilities have been
fulfilled. This is where most dealerships find
themselves in trouble because they lack the necessary
documentation and knowledge required to support the
repair payments as outlined in the Sales and Service
Agreement.
We
all know that it is virtually impossible to keep up with
the expanding demands that Ford is requiring on all of
it’s warranty repair orders. Still, it is the companies
right to demand money back because your personnel are
not keeping up with their end of the bargain. By taking
a pro-active approach and letting us help your
dealership to find its weakness, we can help you avoid
ending up in the Warranty Counseling Process. When the
areas being misused or abused are discovered and the
proper correction plan is implemented you will see a
drastic improvement. Once your employees obtain a solid
understanding of the proper requirements in warranty
claims collection, your chances for a costly audit are
greatly reduced.
Let’s face it. You completed the repair, paid the
technician, purchased the parts from the manufacturer
and now the company can chargeback the repair because
your people did not initial the repair order or in other
terms, they did not cross the “T” or dot the “I”. Do
not give up your hard earned cash without a fight. The
Warranty Practice Review is the cheapest insurance that
you can purchase. Your personnel want to do things
right but they need direction and constant guidance.
Provide them with the tools to carry out their jobs
properly. Summers Dealer Services offers detailed
training and will provide individual assistance to
needing employees. This is something that the
manufacturer lacks in offering.
These are just a few of the areas that will be
beneficial to your dealership when participating in the
sponsored Warranty Practice Review. Listed below are a
few examples of what you can expected from the Warranty
Practice Review:
·
Review of
fifty repair orders (hard copy, original, related
support)
·
Audit tag
attached to each repair order with deficiencies
·
Open phone
line for any questions pertaining to warranty
·
Audit
proof your dealership to limit potential chargebacks
from Ford Motor Company
·
Option to
assist with other warranty concerns
·
Determine
if proper warranty administration and claim payment are
being followed
·
Keep your
employees abreast of the ever changing warranty field
Just because your Warranty Trend Report (126DP) shows
that your warranty numbers are below or at average with
the other dealerships in your region, does not mean that
a Warranty Practice Review will not be beneficial to
you. We have conducted reviews and have found large
amounts of missed eligible dollars waiting to be
collected. In many cases, the cost of the Warranty
Practice Review is recovered from uncollected dollars.
Having a warranty expert review your dealership’s
operations is the best possible insurance you can buy.
The knowledge your employees will gain is ten fold for
the money spent. As always the information from the
review findings will not be shared with anyone except
with your own personnel. Regular check-ups will
increase employee knowledge of this complex and ever
changing world of warranty. You will also receive a
report card on your employees knowledge so you can see
where you stand and how you can improve. Do not wait to
contact us when you have already entered into the
Warranty Counseling Process. It is time for dealerships
to become pro-active in this crucial area. Remember the
manufacturer is your largest paying service customer so
take the appropriate step in make sure your doing what
is required of your business . There is know reason
why your hard earned cash should ever be taken away!!
We
cannot stress enough how many dealerships are jump
started after a Warranty Practice Review so why wait!
Having a professional review your dealerships policies
and procedures will assist in correcting your
dealership’s concerns with
no chargebacks.
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