Video: Increase Dealership Service Revenue With Smarter Warranty Operations

In today’s highly competitive automotive retail landscape, warranty work is far more than a required service function. It’s a powerful revenue driver and a key touchpoint for customer loyalty. In a recent CDK LIVE conversation, industry experts Jim Christle, product marketing manager at CDK and Dan Bonesho, business process consultant at CDK, explored how dealerships can unlock the full potential of warranty operations, challenging the notion that warranty work is simply a cost of doing business. Their insights reveal how a strategic, data‑driven approach can turn warranty claims into a meaningful profit center.

When your Service department starts to make a profit, the dealership makes a profit. Warranty’s gonna build into that.

– Dan Bonesho, Business Process Consultant at CDK

Hidden Profit Potential Behind Dealership Warranty Work

Drawing on decades of industry experience, Dan highlighted that warranty work can account for 25% to 50% of a dealership’s Service revenue when managed effectively. From optimizing labor operations and reimbursement rates to leveraging advanced analytics and coaching, the discussion underscored a clear takeaway: Dealerships that treat warranty work as a strategic opportunity — not an obligation — can improve profitability, strengthen compliance and build lasting trust with customers. 

Tools like WRAP (Warranty Revenue Assistance Program) make this shift even more achievable by giving dealers greater visibility into claims performance, reimbursement accuracy and expert support. With WRAP, dealerships gain the data clarity they need to drive meaningful, measurable improvements in warranty profitability. 

If you did the same amount of warranty work last year, this year, with the new approved rates from the OEM, we’re seeing a lift of around 260,000 to the bottom line.

–  Jim Christle, Product Marketing Manager at CDK

This video breaks down the key lessons from the podcast and outlines practical ways dealerships can elevate their warranty performance.