Slow Warranty Reimbursement Extending Time-to-Cash

With ~$200,000 in average outstanding warranty receivables per store, slow, manual processing can extend DSO by 10–15 days, tying up ~$55,000–$80,000 of working capital and incurring several thousand dollars per year in interest or opportunity cost across each dealership or location. • With an average of $200,000 in outstanding warranty receivables per store, slow and manual claim submission and rework keeps DSO 10–15 days higher than necessary, tying up roughly $55,000–$80,000 in working capital and costing several thousand dollars per year in interest or lost deployment of that cash across all deal types these roles touch. • With an average of $200,000 in outstanding warranty receivables per store, slow, manual claim submission and back-and-forth on documentation can extend DSO by 10–15 days, unnecessarily tying up roughly $55,000–$80,000 in working capital and costing several thousand dollars per year in interest/financing and lost reinvestment capacity.

DMV liaison and back-office teams manually track warranty jobs and receivables in spreadsheets and email threads, chase missing documentation with phone calls and messaging apps, and rely on personal memory to follow up on aged claims. • Sales and title teams chase warranty status informally by asking service advisors and warranty clerks in person, by phone, email, or text; they keep their own ad‑hoc trackers to see which deals still have open warranty work and unpaid claims, and mentally factor slow reimbursements into how aggressively they can price deals or structure approvals. • Staff track unsubmitted and rejected warranty claims in ad hoc spreadsheets and paper folders, chase technicians and advisors via email, phone, and messaging apps for missing story lines and photos, and rely on personal memory or whiteboards to remember to resubmit corrected claims.