How Fixed Ops Automation with a Lifetime Parts and Labor Warranty Is Driving Profit and Retention in Dealership Service Departments
- Michael Dean Aufmuth
- May 6
- 2 min read
Updated: May 10
Dealerships constantly balance the need for profitability with the pressure to deliver an outstanding customer experience. Nowhere is that tension more visible than in the service drive. And yet, many stores are sitting on an untapped opportunity to turn everyday repair orders into long-term customer loyalty and reinsurance revenue, without adding a single step for advisors.
It’s called fixed ops automation, and it’s changing the game.
This isn’t a traditional upsell or another F&I product. It’s a back-end automation tool that quietly works behind the scenes. Every time a qualifying customer-pay repair is written, the system activates, issuing a genuine, limited parts and labor warranty that protects the customer for as long as they own the vehicle.
Here’s how it works:
• Completely Automated Workflow:
When a qualifying RO is closed, the system automatically generates a digital warranty contract. There are no added steps, forms, or manual entries.
• No Extra Work for Your Team:
Advisors do their job as usual. There’s no need to explain the program, sell anything extra, or click a single extra button. It all happens in the background.
• Digital Warranty Delivery:
Customers receive a clean, professional email with their digital warranty contract within 24 hours of the repair.
• Fully Customer-Funded:
The cost is rolled into the RO at a small percentage of the qualifying repair.
• Customizable by Dealer:
You decide which Op Codes are eligible, whether you want to show the cost in labor lines or shop fees, and how to allocate excess reserves for dealer participation, commissions, or bonuses.
Why Dealers Love It:
• Boosts RO Profitability:
On average, stores using this automation see an increase of $130 per qualifying RO, all without lifting a finger.
• Drives Customer Retention:
It’s hard to beat a “lifetime guarantee” on the work you’ve already done. Customers who know you stand behind your repairs are more likely to return and trust your team.
• Enhances Transparency and Trust:
The warranty gives advisors a positive talking point, especially on higher-dollar repairs. Customers feel reassured instead of being upsold.
• Builds a New Profit Stream:
Every contract is eligible for participation through your reinsurance or retro program, adding a steady stream of income tied directly to your service volume.
• Ensures Compliance:
The system automatically includes warranty disclosures in the RO, eliminating the risks of manual entry errors or uneven application.
Real Dealers. Real Results.
One fixed ops leader from a 26-store auto group put it best:
“In addition to the built-in revenue benefit of the warranty, this process helps increase service retention, repair order sales, and reduce lost sales opportunities.”
This is not about changing your store. It’s about enhancing what you already do with a system that does the heavy lifting for you.
If you’re ready to create a powerful “Why Service Here” message, increase RO profitability, and turn your service drive into a customer retention engine, it’s time to take a closer look.
Comments