Formula Automotive Consulting and Technologies, a new company specializing solely in warranty reimbursement for automotive dealers, announced the launch of its consultative services. Spearheaded by fixed-operations experts, it's meant to solve the pain point of warranty rate disparity for auto dealers. The company provides both parts and labor submissions with optimal rates by leveraging years of experience, a command of complex state statutes, and advanced knowledge of manufacturer protocols.
Nearly all states have legislation favorable to dealers, allowing for reimbursement rates similar to their repair rates. However, dealers face a myriad of challenges, including manufacturer preferences, corporate layers, legislative nuances, and learning curves. Reimbursements are frequently less than dealers are entitled to, equating to many thousands of dollars in lost gross profit, which Formula Auto helps its dealer clients claim. Soft-launched six months ago, the company has already completed 250 projects and is on track to complete 500 by the end of the year. The trajectory is projected to gross an estimated $50 million in profit for its dealership clients in 2023.
Partners and co-founders Nicholas Brunotte and Christopher Forgione bring a wealth of expertise in retail warranty reimbursement and auto dealership fixed-operations consulting. Brunotte most recently established the digital solutions practice at one of the nation's largest automotive accounting and consulting firms. In that capacity, he specialized in conducting comprehensive warranty reimbursement audits and submissions of both dealer clients and their vendors.
Forgione most recently worked as director of special projects for a prominent automotive law firm specializing in warranty reimbursement. In that position, he excelled at understanding state laws, as well as manufacturer policies and procedures to identify optimum markup yields and legal strategies to secure the highest possible retail reimbursements.
“Christopher and I, along with our experienced team, have performed thousands of rate increase projects in all eligible states for every manufacturer,” Brunotte said. “What sets us apart is our unique knowledge of the performance and shortfalls of other warranty reimbursement vendors. This coupled with our deep expertise of the legislative nuances and complex manufacturer protocols means the average dealer added $100,000 to $200,000 in annual gross profit when they collaborated with us.”
As part of its soft launch, the company consulted with one of the largest independent dealer groups in the country. An audit of its reimbursement vendor revealed over $14 million left on the table every year.
"Warranty reimbursements are a significant revenue stream for dealers, but only if their third-party vendors are up to the task," Forgione said. "Our hands-on auditing skills, years of experience, and record of success means we can help dealers reach their full revenue potential when other vendors can't."
To learn more visit https://formulaauto.com/.
Originally posted on Auto Dealer Today