Warranty Claims Process

The warranty claims process involves how the dealership handles vehicle repair or service work that is covered under the manufacturer's warranty (or sometimes extended warranty programs), so that the dealership gets reimbursed for the work. When a customer comes in with a problem and the car is under warranty (e.g., 3-year/60,000 km comprehensive warranty in Canada for many brands), the service department first verifies coverage (is the car within time/mileage limits and is the concern covered by warranty terms). The technicians diagnose and fix the issue per the manufacturer’s guidelines, often using specific diagnostic codes and following any technical service bulletins. They document the cause and remedy thoroughly. The parts used and labour time are then compiled into a claim. The process includes writing a detailed description of the complaint, cause, and correction (the 3 C’s) on the repair order, using correct labour operation codes and causal part numbers as defined by the OEM. The claim is submitted electronically through the manufacturer’s system. If done correctly, the OEM will pay the dealership the agreed warranty labour rate and parts cost. If a claim is rejected or adjusted (say the OEM didn't agree a repair was needed or asked for more info), the admin or service manager will handle the follow-up. The process also covers campaigns or recalls, which are similar – those are pre-authorized but still need claim submission for payment. Managing warranty claims effectively ensures the dealership gets paid for work performed and stays in the good graces of the OEM (manufacturers monitor claim patterns to flag abuse or incompetence). It's a specialized administrative task that requires understanding both technical and billing aspects and is vital for the dealership's financial health in service operations.