Warranty Reimbursement Explained: WRAP Questions Answered

Warranty reimbursement can represent a meaningful portion of a dealership’s service revenue. That reimbursement includes labor and parts, both influenced by OEM policies and documented dealership performance.

CDK’s Warranty Revenue Assistance Program (WRAP) helps dealerships improve OEM warranty reimbursement through deep data analysis, a proven methodology, and expert support driving faster time to money through optimized OEM submissions and accelerated approvals.

So far, the program has a nearly 100% first-submission approval rate and early dealers on the program are seeing an average of $260,000 in OEM warranty reimbursement lift.

Below are the most common questions we hear from dealers.

What’s WRAP?

WRAP is CDK’s data-driven program designed to help dealerships improve the warranty reimbursement received from their OEM.

Using root-level access to DMS data, WRAP analyzes thousands of repair orders (RO) across labor and parts to determine optimal submission ranges. From there, CDK applies a structured, proven methodology to prepare and guide OEM reimbursement review submissions.

The objective is to improve reimbursement outcomes and accelerate approvals so dealerships can begin realizing revenue lift sooner.

How does warranty reimbursement work for car dealers?

When a dealership performs warranty repairs, it submits claims to the OEM for reimbursement. That reimbursement typically includes:

• Labor at an approved warranty labor rate
• Parts reimbursement at an approved parts rate

OEM policies allow dealerships to pursue reimbursement reviews based on documented customer-pay RO data and policy guidelines. Submission quality, documentation accuracy and alignment with OEM requirements influence both approval outcomes and timing.

How do I know if my dealership may be eligible for improved reimbursement?

Eligibility is typically based on documented customer-pay RO data and OEM policy guidelines.

If retail labor or parts pricing has changed — or if your reimbursement structure hasn’t been formally reviewed in recent years — there may be opportunity to pursue updated reimbursement rates.

WRAP evaluates dealership data to determine whether a structured reimbursement review is supported and aligned with OEM requirements.

What makes a reimbursement submission successful?

Successful submissions depend on comprehensive data analysis, proper documentation and alignment with OEM and state-specific guidelines.

Incomplete or poorly structured submissions can delay the review process. WRAP combines deep DMS data extraction with a structured, proven methodology designed to optimize submissions and help move them efficiently through OEM approval.

Optimized submissions support stronger reimbursement performance and faster approval timelines.

How long does OEM approval typically take?

Approval timelines vary by manufacturer and program guidelines. 

However, preparation and submission quality often influence review efficiency. By leveraging direct DMS access and expert guidance, WRAP is designed to support optimized submissions and accelerate the path to approval, helping dealerships begin realizing improved reimbursement performance sooner.

How’s WRAP different from warranty claim processing services?

Warranty claim processing services typically focus on improving accuracy at the individual claim level. WRAP focuses on improving overall warranty reimbursement rate from the OEM through structured reimbursement review submissions supported by comprehensive data analysis.

The objective isn’t simply to process claims but to optimize reimbursement outcomes now and in the future through analysis and ongoing coaching.

What makes WRAP different from third-party warranty consulting services?

Many warranty consulting providers operate outside of the dealership’s core systems. WRAP is different because it’s delivered by CDK — the same company that powers the DMS used by thousands of dealerships.

That difference matters. WRAP specialists have deeper visibility into dealership operational data and system workflows, allowing them to analyze warranty performance with greater context and accuracy.

Do I have to be a CDK customer to take advantage?

WRAP is designed to integrate seamlessly with CDK DMS, and eligibility may vary depending on your dealership’s current technology environment. A CDK representative can review your setup and outline available options.

What OEMs does WRAP work with?

WRAP supports a range of major automotive OEMs. Coverage varies by manufacturer and program requirements. Because OEM policies evolve over time, a WRAP specialist can review your specific brand and confirm how the program applies to your dealership.

Explore Your Warranty Opportunity 

Improving OEM warranty reimbursement isn’t just about submitting claims. It’s about leveraging data, methodology and expertise to optimize outcomes and accelerate approvals. With the right approach, dealerships can increase their reimbursement rates and begin realizing revenue lift sooner.

See what securing a higher reimbursement rate could mean for your dealership and connect with a CDK expert.