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Many Retail Warranty Reimbursement Statutes Apply to Heavy Truck Dealers Too
Auto Dealership Service Center

We heard from a heavy truck dealer recently that they had no idea that the retail warranty reimbursement statute in their state applied to them as well.

Upon further investigation, we found that very few heavy truck dealers have yet to capitalize on the opportunity that exists or are even aware that some state statutes apply to them.

According to American Truck Dealers (ATD), the average warranty gross profit for Heavy Trucks is 21%. The same report states that the LOW benchmark for auto dealers is 28%+ which means that Heavy Truck dealers are getting 7% less than auto for warranty work and yet many heavy truck dealers are not taking advantage of retail warranty reimbursement laws like auto dealers are.

For reference, we did an analysis for a dealer who sells Caterpillar, Cummins and Freightliner:

     Their Caterpillar analysis showed an average increase of 10.61%, equating to an average gross profit percentage of 42.47%.

     Their Cummins analysis showed an average increase rate of 15.14%, equating to an average gross profit increase percentage of 60.57%.    

     Their Freightliner analysis showed average increase rate of 27.62%, equating to an average gross profit increase    percentage of 83.72%.

For information on whether the applicable state law applies to your heavy truck dealership and for a no-cost analysis to determine what rate you qualify for, please reach out to [email protected].

Warranty Reimbursement Done Better

February 7, 2024