Retail Warranty Reimbursement

Armatus Dealer Uplift (formerly Armada) Helps Dealers Increase Their Annual Warranty Parts Gross Profits by $80,000 – $100,000

Our commitment to our clients:
  • You will barely lift a finger
  • Money in your pocket as quickly as 45 days
  • We won’t get paid until you get paid

What We Do

The Problem
The Problem

Auto dealers have been forced to “discount” their warranty parts. Typically they only receive a 40% mark-up or MSRP. Neither reflect true retail.

The Opportunity
The Opportunity

Over the last several years, 40 states and counting have enacted legislation that entitles dealers to be reimbursed for warranty work at retail, which is actually the dealer’s customer “repair” rate.

The Challenges
The Challenges

Complexity of State Statutes; Manufacturer Protocols and Pressures; Data Acquisition and Processing; Gatekeepers; Suboptimal Results; Limited Internal Resources

The Solution
The Solution

Outsource entire process to Armatus, and have us help you receive optimal results, without your having to lift a finger.  And No Upfront Fees – We Do Not Get Paid Until You Get Paid!

“From the time we signed the contract until the excellent results were achieved in our parts mark—up calculation, the services were precise and most efficiently handled. All of our questions were patiently answered. Most comforting was the absolute precision and calculation of the worksheets, which provided great confidence in the GM approval process. The submission was quickly approved by the manufacturer and not a single calculation was questioned. I believe the manufacturer is also aware of how careful Armatus is with their analysis. The submission and approval resulted in an additional $200,000 of annual gross profit in our parts operation.”

- Kevin M. Bell, Dealer

Who We Do It For

Over a five year period, we have grown to service:
7 of 12 Top Dealership Groups
Join Our Growing Family

The Problem & Action Taken

With multiple dealerships in multiple states, the Dealer needed an assessment to determine its national strategy and uplift opportunity based on State and manufacturer. After extensive research and analysis, Armatus recommended a market approach for optimizing results.

The Results

Market by Market Strategy Built-Out


Gross Profit Uplift

Multiple 7-Figures
per year

Profile: High-Line Import Dealer

Action: Dealer requested warranty mark-up increase protocol from the manufacturer. Manufacturer ignored multiple requests. Dealer turned over project to our group. Submitted declaration based on established “fair and reasonable” protocol thus forcing statutory response from manufacturer. “Reverse-engineered” manufacturer protocol from response and resubmitted to manufacturer.

The Results

Factory-Approved Mark-Up


Gross Profit Uplift

per year

Profile: Domestic Franchise Dealer

Action: Dealer performed their own internal analysis and submission resulting in a 64% mark-up, which they were satisfied with. Dealer principal was referred to our group by another dealer client. Our subsequent analysis revealed an additional opportunity for increased profit. Submitted and received manufacturer approval.

The Results

Factory-Approved Mark-Up

(32 points higher than original approved percentage)

Gross Profit Uplift

per year
$8,700 per month (higher than previous gain)

Profile: Import Dealer

Action: Dealer performed their own internal analysis for submission to manufacturer and was rejected – TWICE. Dealer principal was referred to our group by another dealer client. Performed analysis and submitted increase declaration on behalf of dealer. Received manufacturer approval.

The Results

Factory-Approved Mark-Up


Gross Profit Uplift

per year


“We initially went with a vendor that charged a flat fee to save money, but when Hyundai rejected their filing, they did not follow through. That’s when we called Armatus. They got us approved in 30 days and our markup is 15 points higher. It turns out the “cheaper” vendor would have cost us a LOT more.”

- Philip D’Amore, Parts and Service Director

How We Do It


Data Projection

From your dealership’s Financial Statement data, we will project an expected mark-up based on your individual numbers, normalized by utilizing our extensive database


Submission Authorization

Once you review the projections, and decide you’d like to proceed, you will send us a signed Submission Authorization Agreement, and we will get your store(s) “in the queue.”


Data Extraction

With your approval for limited access, Armatus’s technology team will extract data pertinent to the warranty uplift process.


Analysis Preparation & Delivery

We will put our proprietary software and data management methods to work to pinpoint the best possible mark-up. Then, we initiate our detailed audit, annotate where appropriate, apply discounts and finally, configure your submission package according to factory and state guidelines.


Factory Response

If for any reason you do not receive the expected result, we will manage the response process through you; guiding you every step of the way. We will draft all correspondence, and coach you through any conversations that might be necessary.



Upon factory approval you can modify the mark-up in your DMS and immediately and permanently reap the benefits of your additional warranty parts profits.

Obtain Your Free, No Obligation Projection

How We Are Different

Are You Considering Doing This On Your Own?

Before you commit time or resources, consider the following...


The Statutes are Complex

Many are Vague; They are Intricate; Subject to Interpretation; Significant variations from state to state.

Armatus has expertise in each state law, and in fact we have assisted in drafting four of the most recently passed statutes, and are currently consulting on four more.


Optimizing Results is Difficult

Massive amount of data; Limited human resources; Lack of adequate technology; No scientific methodology.

Armatus has the industry’s only true proprietary optimization software, which mathematically guarantees the optimum result.


Data Acquisition & Processing Can Be Difficult

Obtaining the proper data, including the thousands of invoices for a submission is challenging.

Armatus has perfected data and electronic invoice acquisition; other than providing system access, dealers don’t have to lift a finger.



Manufacturers Respond Differently

Specific protocols for “qualifying” or “allowable” parts; Nuances such as: Varying submission format requirements, Application of customer discounts, Changing of the rules.

Armatus is known as “central intelligence” as it relates to manufacturers behaviors related to retail warranty submissions.  Just ask us, we’ll give you insights you can’t get any other way.


Significant Internal Resources Will Be Required

Your people are busy getting business in the door and taking care of customers.  Every moment spent doing complex submissions is time away from their main job—generating revenue.

With all due respect, this is very complex subject matter, and it should be treated as such.  Armatus’ knowledge of the laws, the manufacturers behaviors, their proprietary software, and their audit staff can assure more timely and superior results, far outweighing our fully contingent fees.

“We used Armatus to aid us in our Warranty Parts and Labor submission and couldn’t have been more pleased with the effortless and outstanding service we received in helping us maximize our Parts and Labor mark-up. They went above and beyond in their promise to deliver quick and positive results. We are certain we never could have attained the amount of mark-up going through the process by ourselves. We highly recommend their services to any dealer who is looking to increase profits through this process.”

- Steve J. Zaun, General Manager, Puklich Chevrolet Inc.

Frequently Asked Questions

Yes we do.  In addition to performing “standard” manufacturer labor submissions,  we also perform statutory submissions, depending on which one yields the best result.  Clients who engage us to do a parts submission, enjoy the added benefit of having their Customer Pay Labor audited to determine if they’re in a position to submit for a warranty labor increase.  It’s not unusual for the labor uplift to equal or exceed the warranty parts uplift. Of course, this is a completely separate submission, and would be subject to an additional agreement.

Bear in mind, we can perform manufacturer labor submissions in all 50 states, so even if you can’t obtain retail for parts, you can still take advantage of our professional services and optimization to perform your “standard” labor submission.

MSRP is possibly one of the most misunderstood terms in the auto industry.  It is sometimes used interchangeably with “retail”, which most dealers consider to be a 67% mark-up. However, a careful study of the few manufacturers that reimburse warranty parts at factory MSRP will reveal that the true, or “effective” mark-up, is usually between 50% and 55%, depending on work mix.

The “retail” that dealers are entitled to under favorable state statutes is the amount that their customers pay them for warranty-like work. “Customer Pay Retail” optimized for Armatus clients is usually a mark-up in the 75% to 85% range; far greater and more equitable than the standard 40% markup paid by the vast majority of factories, or MSRP mark-ups granted by a few manufacturers.

That depends on what manufacturer, and in what state.  While factory behavior is certainly a valid issue for every dealer, in recent years, the prevalence of updated statutes and increased number of dealer requests has lessened the level of concern considerably.

Our experience is that manufacturers fall into three categories: those that follow the letter and spirit of the law; those that challenge retail submissions, but ultimately pay; and those that simply refuse to pay retail. By and large, most manufacturers now handle submissions professionally and without conflict.  In over 2,000 submissions we have not seen any sign of retribution, regardless of what category the manufacturer falls into.  Top industry attorneys agree that retribution in this arena is largely a myth.

A dealer choosing to do this in-house would have to read and interpret the law, understand the manufacturer’s protocols, compile the submission, and deal with the manufacturer’s response.  Assuming the dealer’s personnel are up to all of that, and execute a perfect submission – on their first effort – they may be ready to submit in about sixty days. Approval of the retail rate in most states must occur within thirty days (some states are 60 days) for a realistic total of ninety days.

Barring data access issues, Armatus would typically have the process completed in about half that time – usually forty-five days.  Time is money; for the average store, this time savings would mean an additional profit of $12,000.  And of course, there would be the additional profit left on the table that could have been derived from Armatus’s optimization process.

Although there are 40 states with strong or favorable statutes, no two are identical.  To complicate the matter, a given manufacturer may approve submissions in certain states requiring retail, but not in others.  The manufacturers behaviors are constantly in flux, and it would be best to consult a professional, rather than just looking at your state law for a retail reimbursement requirement.  Since we are constantly engaged in the process of submitting to all manufacturers across the country, we can give you an answer on the spot.

You know, that’s the number one question we get asked.  The answer is an emphatic no! As incredible as the opportunity might sound, these benefits are being enjoyed and taken advantage of day in and day out by dealers all over the country.  We’ve built the road map for you so you barely have to lift a finger, and you can achieve the best possible mark-up available.   And… you can be submitted and approved faster than any other method. Our clients are constantly amazed at how easily and efficiently they can begin to enjoy their new found profits, and unlike other initiatives, there’s no need to make any investments in brick and mortar, inventory, advertising or personnel.

It’s a no brainer!

Let’s Get Started

Get a Free No Obligation Projection of the Gross Profit You Can Put to Your Bottom Line

  • Double your warranty gross profits
  • You won’t lift a finger
  • Guaranteed optimal results
  • Money in your pocket as quickly as 45 days
  • We won’t get paid until you get paid

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