WARRANTY PARTS REIMBURSEMENT. at Retail Rates

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1 WARRANTY PARTS REIMBURSEMENT at Retail Rates

2 The law firm is recognized as one of the foremost in the nation for advocating the rights of franchised dealers and is widely regarded as a pioneer in the area of establishing the rights of dealers to receive Warranty Reimbursement at retail rates.

3 The Pioneers in Warranty Reimbursement Bellavia Blatt Andron & Crossett, PC, has been in the forefront of Warranty Reimbursement for dealers for two decades. In the 1990s, dealers were essentially powerless to force manufacturers to pay more than the national reimbursement rate of cost plus 40%. The law recently changed to streamline the process for dealers to obtain reimbursement at retail rates for warranty parts. Each and every dealer should have already invoked this new provision in the law to obtain their retail markup instead of the customary rate of cost plus 40%. Our firm is widely regarded as a pioneer in warranty parts reimbursement. We successfully litigated against the largest manufacturers and, after recovering seven (7) figure retroactive warranty payments for our clients, the manufacturers responded by negotiating legislation in several states which allowed for prospective payments at retail. Bellavia Blatt Andron & Crossett, PC was a true groundbreaker in commencing mass action lawsuits on behalf of over one hundred dealers winning historic settlements in many cases. Since that time, we ve been recognized as a preeminent firm for assisting dealers in obtaining substantial revenue increases with respect to Warranty Reimbursement. The attorneys at Bellavia Blatt Andron & Crossett

4 Most States Have Statutes Requiring Fair and Reasonable Warranty Reimbursement; Over the Next Several Years, We Predict the Remaining States Will Follow Suit The factory should not be in control of your warranty markup; you should be. The legal services that Bellavia Blatt Andron & Crossett provide are integral to the process. Although these retail reimbursement statutes are being A Service Manager is No Substitute for Legal Expertise The process of Warranty Reimbursement is time-consuming and complicated. Many dealers lose money in several ways by attempting to do this in-house with the help of a service manager. However, the amount of money at issue is far too substantial not to hire an attorney with extensive experience in these important matters. Over a five-year period, the increased revenue often exceeds the blue-sky value of a dealership. Bellavia Blatt Andron & Crossett knows how to identify the highest yielding qualifying sequential repair orders out of the thousands within a multi-month period. Your manufacturer enacted nationwide dealers must affirmatively prepare a comprehensive submission in order to realize the benefit dealers who ignore or waive these rights are leaving hundreds of thousands of dollars on the table. does not need to know you have retained us. Even the best service or parts managers can rarely do this effectively, nor should they spend valuable time away from their regular duties. We will show you how you will spend less money by retaining us than doing the work inhouse. In addition to saving money, we will likely achieve a higher percentage markup and we will be there to make the legal arguments to rebut the manufacturer s lawyers attempts to frustrate or discourage the submission. In working with hundreds of dealers throughout the country, our firm knows how to make sure that our clients receive what they are entitled to, without impacting their bottom line. The Difference Between Retaining Bellavia Blatt Andron & Crossett Versus an Accountant or a Non-Attorney Consultant The procedure for obtaining retail rates for Warranty Reimbursement constitutes the practice of law. Neither your service manager, nor your accountant, nor an outside consultant is authorized to practice law. While certainly mathematical calculations can be performed by non-attorneys, the fact is that most manufacturers have their legal department reject the initial submission by raising nuanced legal arguments directed at the language and intent of your State Statute. The submission, therefore, is one part accounting and two parts law. Most manufacturers recognize our firm s unparalleled experience when it comes to Warranty Reimbursement. We are a firm with knowledge and legal expertise that a nonattorney cannot offer.

5 Maximizing Warranty Parts Reimbursement Can Make All The Difference Take a look at yearly markup comparisons for a sample dealership: As you can see, the difference in receiving what the manufacturer thinks you are entitled to and the optimum markup you may receive can make a significant difference to your dealership s financial viability and continued growth. We have come a long way since the customary factory rate was cost plus 40% the industry standard and our firm helped pave the way to additional profit for dealers of all sizes. Small Dealership: Medium Dealership: 1 Year 5 Years Yearly Warranty Parts Sales $400,000 Cost of the Parts $285,714 Profit $114,286 Yearly Warranty Parts Sales at 67% Markup $477,143 Profit $191,429 Additional Profit from Higher Warranty Parts Markup $77,143 $385,715 Yearly Warranty Parts Sales at 80% Markup $514,285 Profit $228,571 Additional Profit from Higher Warranty Parts Markup $114,285 $571,425 Yearly Warranty Parts Sales at 90% Markup $542,857 Profit $257,143 Additional Profit from Higher Warranty Parts Markup $142,857 $714,285 1 Year 5 Years Yearly Warranty Parts Sales $800,000 Cost of the Parts $571,428 Profit $228,571 Yearly Warranty Parts Sales at 67% Markup $954,285 Profit $382,857 Additional Profit from Higher Warranty Parts Markup $154,285 $777, Yearly Warranty Parts Sales at 80% Markup $1,028,571 Profit $457,142 Additional Profit from Higher Warranty Parts Markup $228,571 $1,142,555 Yearly Warranty Parts Sales at 90% Markup $1,085,712 Profit $514,285 Additional Profit from Higher Warranty Parts Markup $285,714 $1,428,570 Large Dealership: 1 Year 5 Years Yearly Warranty Parts Sales $1,500,000 Cost of the Parts $1,071,428 Profit $428,571 Yearly Warranty Parts Sales at 67% Markup $1,789,285 Profit $717,857 Additional Profit from Higher Warranty Parts Markup $289,285 $1,446,425 Yearly Warranty Parts Sales at 80% Markup $1,928,571 Profit $857,142 Additional Profit from Higher Warranty Parts Markup $428,571 $2,142,855 Yearly Warranty Parts Sales at 90% Markup $2,035,714 Profit $964,285 Additional Profit from Higher Warranty Parts Markup $535,714 $2,678,570

6 Dealer Concerns About Retaliation Bellavia Blatt Andron & Crossett understands all too well dealers concerns about retaliation on the part of manufacturers. But we can assuage those concerns by confirming that in all the years we have been working on behalf of automotive dealers and dealer associations, we have not experienced one instance of retaliation or increased audits of our clients. Our Fee for Warranty Reimbursement Fixed, Fair, Affordable, and Quickly Recouped Our law firm s flat fee is quite fair and competitive because of the volume of work we perform nationally for dealer associations and hundreds of dealers. The low fee is generally recouped within the first month of receiving reimbursement at retail. We do not become your partner by charging you a contingency or percentagebased fee. The manufacturers understand that a dealer represented by experienced counsel like Bellavia Blatt Andron & Crossett is armed and prepared to invoke the law, if any form of retaliation is attempted. Manufacturer retaliation, therefore, is not a serious concern for dealers that have us in their corner. We know of no other firm that performs as many submissions across the country as we do. We are truly industry experts and your factory knows that. There is simply too much money at stake to entrust this important legal service to anyone else. Because of the volume of the work we perform, our team can keep the fee at an eminently fair fixed amount for our clients.

7 The Dealer s Overview: Bellavia Blatt Andron & Crossett is the law firm with a national reputation in Warranty Parts Reimbursement. Bellavia Blatt Andron & Crossett is a recognized authority on franchise issues. Bellavia Blatt Andron & Crossett helps to balance the scales between the dealer and the manufacturer. Bellavia Blatt Andron & Crossett utilizes a process designed to obtain the maximum reimbursement rate on your behalf. Bellavia Blatt Andron & Crossett charges a low flat fee which is generally recouped within the first month of obtaining warranty reimbursement at retail DEALERLAW.COM Main Office: 200 Old Country Road, Mineola, NY 11501

8 Representing Automobile Dealers and Dealer Associations Nationwide