Why Outsource Warranty Processing?
Processing warranty at a dealership, from a dealer's point of view, is difficult to say the least. Here's why outsourcing is cheaper, more efficient, and better for your business.
The Problems Every Dealer Knows
The cost to train and keep staff capable of doing the job properly — combined with the lack of manufacturer training resources — alone makes outsourcing a good decision. Then add the quality of the work performed. Most dealers have claims on their schedule that are at risk of never getting paid because the clerk doesn't know what to do, or has gotten overwhelmed with the workload.
Hiring is a gamble
It isn't a high-salaried position, so attracting the best people is unlikely. You hire someone and hope they can do the job effectively — with no real way to know until something goes wrong.
Training is on you
There are no manufacturer resources to properly train a warranty administrator. You invest time and money, and then hope it sticks.
You only find out when it's too late
You trust they're looking after your best interests — and only discover otherwise when the warranty schedule gets out of control, or worse, you're audited by the manufacturer.
"I'm waiting on Nissan"
Early questions about aging receivables are answered with vague reassurances. By the time you push harder, months of recoverable revenue may already be at risk.
Turnover resets everything
If the person is doing a good job, you hope they don't quit. When they do, you start the entire process again — and the knowledge walks out with them.
Vacations and leaves stop cash flow
Warranty cash flow stops while the clerk is away. Training a temp to cover a leave of absence rarely works — they don't know the system.
Managers doing warranty is worse
When a manager or advisor covers warranty, it takes them away from the job they were hired to do — and the quality of the warranty work suffers even more.
One person knows the system
In almost every dealership, only one person really understands the warranty process. No one can monitor their work effectively — and no one knows what they don't know.
In-House vs. Fixed Ops
Challenge
In-House
Fixed Ops
Cost
Salary, CPP, vacation pay, overtime, sick time, benefits — plus the hidden cost of claims that never get paid because the work isn't done right.
Fixed cost. No CPP, vacation pay, overtime, sick time, or benefits. Less cost than an in-house clerk — with better results.
Continuity
Vacations, maternity leave, and sick days stop your warranty cash flow. Temps don't know the system.
No disruption in payments due to vacations or any other time off. Seamless coverage, always.
Training & Knowledge
No manufacturer resources to train staff. Knowledge lives with one person and walks out when they leave.
Fully trained and up to date on all OEM warranty processes and procedures. Our team's knowledge doesn't leave.
Compliance & Audits
Claims at risk of never getting paid because the clerk doesn't know what to do or gets overwhelmed.
All claims are reviewed for compliance before submission — so you know exactly what to train your staff on.
Visibility
Aging receivables answered with "I'm waiting on Nissan." No clear picture of what's at risk.
Weekly/monthly reports on the health of your claims, with clear explanations on any outstanding amounts. No surprises.
Security
Claims and sensitive data handled by a single employee with limited oversight.
Claims never leave your dealership. Full transparency with Dealer, GM, and Service Manager at all times.
What You Get With Fixed Ops
Outsourcing warranty processing is cheaper and much more efficient. Every benefit below is something your dealership gains from day one — with a simple contract cancellable on 30 days notice.
Fixed cost — no CPP, vacation pay, overtime, sick time, or benefits
Less cost than an in-house clerk
Weekly/monthly reports on the health of your claims with clear explanations on any outstanding amounts
No surprises
All claims reviewed for compliance — know exactly what to train your staff on
Know exactly what to train your staff on
No disruption in payments due to vacations or other time off
Fully trained and up to date on all OEM warranty processes and procedures
Dealer, GM, and Service Manager kept fully aware of all warranty payments and concerns
Claims never leave your dealership
Contract can be cancelled with 30 days notice
Simple terms. Cancel with 30 days notice.
We're confident enough in our results that we keep things simple. Our contract can be cancelled with 30 days notice — because we believe you'll stay because of the value we deliver.
See the Fixed Ops Difference for Yourself
Contact us for a no-obligation consultation. We'll review your current warranty process and show you exactly what we can improve — at no cost to you.