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The Dos and Don’ts of Outsourcing OEM Warranty Administration

In a landscape where automotive sector labor costs soar and fewer young professionals climb aboard, outsourcing warranty administration seems an increasingly alluring path for dealerships. The potential perks? Better returns, reduced audits, and operational liberation — in theory. But success hinges on sidestepping common pitfalls and embracing best practices. For a deeper dive into outsourcing your OEM warranty administration, refer to the comprehensive article I wrote featured in AutoSuccess Online.

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Avoid Common Missteps with Warranty Services

Ditch the assumption that an external warranty service can mirror the role of an internal admin without change. The proximity of in-house staff enables constant information flow — something that must be meticulously managed when opting for an outsourced solution. A reliable service molds accountability, ensuring nothing slips through the cracks.

Frustrated hands filing warranty claim paperwork.

Communication is key. An exemplary service stands out by not just managing warranties but also fortifying your team’s capabilities. They focus on on-site training, equipping advisors and technicians to compile impeccable repair orders (ROs), thus unburdening management to pursue broader business objectives.

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Evaluate Service Providers Strategically

One must thoroughly vet prospective warranty services for their adaptability and communication etiquette. Is the provider capable of bridging the informational divide that often accompanies the transition? Will they prevent service managers from descending into warranty clerks? Services that offer robust on-site training, carve an avenue for better ROs, are priceless.

However, integrating such a service falls flat if local management is not on board. The involvement of service management from the outset — from selection to implementation — is crucial. Apt management buy-in can be the difference between a well-oiled warranty process and one fraught with inefficiency.

  • Understand service managers’ objections
  • Plan for support in managerial duties beyond warranty work
  • Ensure alternative ways to maintain claim quality and compliance

Proactive Planning Beats Crisis Managementblank

A reactive approach is a recipe for disaster. In-house systems, while familiar, are prone to failure at inopportune times. The abrupt departure of a warranty admin can cascade into a logistical nightmare: vital claims neglected, submissions piling, and cash flow stymied.

Anticipation and preparation outweigh the pitfalls of procrastination. Proactively scouting for a responsible service allows your dealership the luxury of time — to assess, to select, and to integrate a service provider that champions OEM-specific expertise and commendable customer experiences.


In essence, outsourcing your warranty administration must be a calculated move, marked by strategic evaluation and proactive groundwork. Achieve this, and your dealership can enjoy the benefits of a seamless, efficient warranty management system.

Administrating, marketing, assisting, training, and instructing warranty administration services since 1995.