🇦🇺Australia

Core Charge Return Warranty Disputes

2 verified sources

Definition

Poor tracking of core charges (refundable deposits on parts like batteries, alternators) results in lost deposits, unreturned cores, customer refunds, and compensation under ACL for faulty parts.

Key Findings

  • Financial Impact: AUD 5,000-20,000 per major dispute; 2-5% of parts revenue in refunds/rework
  • Frequency: Per return cycle (monthly/quarterly)
  • Root Cause: Manual errors in tracking returned cores vs. billed charges

Why This Matters

The Pitch: Wholesale Motor Vehicles and Parts players in Australia 🇦🇺 waste AUD 10,000+ annually on returns processing disputes. Automation of core charge tracking eliminates warranty claim losses.

Affected Stakeholders

Returns Manager, Parts Inventory Clerk, Accounts Receivable

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Manual Core Charge Inventory Write-offs

AUD 200-500 per lost core (e.g., battery); 20-40 hours/month manual reconciliation

Core Charge Refund Fraud

1-3% inventory shrinkage; AUD 1,000-5,000 per fraud incident

Delayed Accounts Receivable Payments

AUD 3,000 per average invoice tied up (30+ days); collections agency fees post-7 business days overdue; storage fees for delayed delivery (e.g., 7+ days at reasonable rate)

AR Collections Agency Costs

Collections agency fees (typically 10-20% of debt value) after 7 business days overdue; e.g., AUD 300-600 on AUD 3,000 invoice

Storage Fees from AR Delivery Delays

Reasonable storage fees per vehicle (7+ days, e.g., AUD 50-200/day based on industry norms)

Verzögerte Zahlungsflüsse durch manuelle Bonitätsprüfung

Logic-based estimate: ~AUD 30,000–70,000 per year in avoidable interest/financing cost for a mid-size wholesaler due to 3–5 extra days in average time-to-cash, plus tied-up working capital of ~AUD 410,000–685,000.

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