When “IMPROVEMENTS” Can Hurt The Dealer

WHEN “IMPROVEMENTS” CAN HURT THE DEALER

 

Dateline: June 2019: The Manufacturer is making it easy on dealers –again. In July, the manufacturer is tweaking the process of validation and enrollments for Conquest and Trade In programs. They will begin to use the same data verification system that they already utilize for Owner Loyalty and RCL Renewal Programs. So, when the registration data matches, the enrollment is automatically approved, and no documentation is needed. That’s good, right?!

The problem occurs when the registration data doesn’t match (like is the case with most customers who weren’t the original purchaser of the vehicle). You simply upload documents, hopefully the exception is approved, and boom, you get your money. Again, that’s good, right?!

Not always. As demonstrated with the current process, MCC has a habit of approving exceptions with a lot of different documents. You upload a registration, Approved. But, in the event of an audit, the registration is not an approved document. So, despite the temporary approval, and despite the manufacturer funding the dealer the $1000 rebate, in the event of audit, without the PROPER back up document (like a title or finance contract), the dealer is going to realize that the funding was just temporary and a charge back is forthcoming. Just like MCC having the habit of bogus approvals, the GAO has a habit of taking back monies on these “approvals”.

ALWAYS read the supporting document section in the original program. Make sure you have one of the documents listed there—do NOT get sucked into the trap of getting an approval with a non-approved document. THE. MANUFACTURER. WILL. TAKE. BACK. THEIR. MONEY.