New Arizona state laws now allow dealerships to bill back the manufacturers at the same rate they charge a “paying” customers. It is a big change and a majority of the states have this same law already.

 If a dealership can prove and provide an analysis of the rate they charge customers, and if it is over a 40% markup, the manufacturer will allow the dealership to charge back the manufacturer that same rate.

Here is an example: 

A water pump costs $100.00. Under the old rules, the dealership could charge the manufacturer back $140.00, making a $40.00 profit.

Because they can now prove that they charge customers $188.00 for that same water pump, they can now charge the manufacturer $188.00 for it.  Now, the profit is $88.00, or an 88% markup.

For a full version of the New Arizona state laws click here:  AZ House Bill 2348 (2)

PCW can help your dealership realize the profit of higher markups. We can save you time and money by doing the full analysis for your company!  Recently, PCW completed an analysis and submitted it to the manufacturer proving that the company has been charging customers an average of 88% over cost. The manufacturer accepted the submission, and now the dealership can charge the manufacturer an additional 48%, which goes straight to the dealership’s bottom line. We are pleased to help our customer achieve increased profitability.