Warranty Reimbursement

New York

New York pays warranty at retail rate and retail time. Most stores collect neither.

State law entitles a franchised dealer to retail-rate reimbursement on warranty parts and labor, and a 2024 amendment added something few states offer: labor time measured by the retail time guide you use for your own customers, not only the factory's flat times. Most New York stores have not touched either number.

N.Y. Veh. & Traf. Law § 465 · Procedures relating to warranties; compensation at retail

What you are owed

Retail rate

Parts and labor at your retail rate, with labor time allowed under the retail labor time guide you reasonably use for customer-paid work.

When it takes effect

30 days

A declared rate takes effect 30 days after submission. Claims must be approved or disapproved within 30 days of receipt and paid within 30 days of approval.

How often you may file

Once a year

You may not request a change to your reimbursement rate more than once in each calendar year. A weak request costs the year behind it.

Your declared rate

Presumed reasonable

The franchisor can rebut it only by showing it is unreasonable against all other same line-make dealers in your vicinity.

Why It Is Not A Form

The law gives you the right. Proving it is the work.

New York gives you two levers, rate and time, and both have to be proven out of your own customer-paid repair orders. The statute decides which of that work counts and which does not. It is generous to dealers on paper, and a submission still has to survive a franchisor who reads it looking for the one line that does not hold.

The exclusions turn on how the work was written

New York's list of excluded work is shorter than many states', but several items are excluded only in some circumstances and not in others. Whether a line counts can depend on how it was written up, and a misread pulls your average the wrong way.

Leaving the time lever untouched

The 2024 amendment is the part most stores have not acted on. A filing that argues only the hourly rate, while warranty hours stay pinned to factory flat times, leaves the newer entitlement on the table.

The vicinity comparison

Your rate is presumed reasonable, and the franchisor's way around that is a comparison with same line-make dealers near you. A rate you cannot support line by line is the one that comparison catches.

And you get one request a year

Because a change can be requested only once per calendar year, a submission that falls apart does not just fail. It leaves you on the old rate and the old time for another twelve months.

The Part Most Dealers Miss

The rate is half of it. Time is the other half.

Most retail-rate laws stop at the hourly rate, so a store can win the rate and still be underpaid on every job the factory times short. Since September 2024, New York lets a dealer claim warranty labor using the reasonable labor time allowances in the retail labor time guide it actually uses for customer-paid work.

The statute also keeps the process from being turned against you: the franchisor cannot impose an unduly burdensome or transaction-by-transaction method, and a minor clerical error is not, on its own, a reason to deny a legitimate claim. The entitlement is broad. Collecting it depends on a submission built to hold.

We Do This For You

Over 400 warranty reimbursements, personally.

John Fairchild has run more than 400 warranty reimbursement filings himself. You do not pull the repair orders, decide what qualifies, or argue the categories. We build the submission, you review it before it goes anywhere, and it goes out under a rate we are prepared to defend.

Most filings come back in 45 to 60 days. That depends heavily on the manufacturer, and on whether they ask for additional repair orders before they answer, which every statute allows them to do.

And because your rate is proven out of your own customer-pay pricing, we do not stop when the letter is sent. The platform runs the daily discipline that protects that pricing all year, which is what decides how high you can go the next time you are allowed to ask.

Get your free New York rate analysis

No cost, no obligation. We will tell you the rate you could defend today and whether filing is worth running at all.

Summary of N.Y. Veh. & Traf. Law § 465 as published by the State of New York, reviewed July 2026. Statutes change; we re-verify before every filing.

New York Warranty Reimbursement Law (N.Y. Veh. & Traf. Law § 465) | Fixed Ops HQ