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Automotive Service Advisor Course - SA04

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  1. LESSON 1: AUTOMOTIVE SERVICE ADVISOR COURSE

    Automotive Service Advisor Course Introduction
  2. LESSON 2: CROSS-SELLING ADDITIONAL SERVICE MAINTENANCE ITEMS
    How To Cross-Sell Additional Service Maintenance Items
    8 Topics
    |
    1 Quiz
  3. LESSON 3: EVERYTHING YOU NEED TO KNOW ABOUT SERVICE REPAIR ORDERS
    Everything You Need To Know About Service Repair Orders
    6 Topics
    |
    1 Quiz
  4. LESSON 4: BREAKING DOWN NEW VEHICLE FACTORY WARRANTY
    Introduction To New Vehicle Factory Warranty Policy & Procedures
    10 Topics
    |
    1 Quiz
  5. LESSON 5: CUSTOMER SERVICE ESSENTIALS FOR AUTOMOTIVE SERVICE ADVISORS
    Customer Service Essentials For Automotive Service Advisors
    5 Topics
    |
    1 Quiz
  6. LESSON 6: HOW SERVICE ADVISORS CAN TACKLE CHALLENGES IN THE AUTOMOTIVE INDUSTRY
    How Service Advisors Can Tackle Challenges In The Automotive Industry
    4 Topics
    |
    1 Quiz
  7. LESSON 7: AUTOMOTIVE SERVICE ADVISOR CUSTOMER CONSULTATION STEPS
    Automotive Service Advisor Customer Consultation Steps
    9 Topics
    |
    1 Quiz
  8. LESSON 8: THE MOST EFFECTIVE SERVICE ADVISOR SALES PROCESS & CLOSING TECHNIQUES
    The Most Effective Service Advisor Sales Process & Closing Techniques
    9 Topics
    |
    1 Quiz
  9. LESSON 9: COMPLETING THE SERVICE VISIT - THE SERVICE VEHICLE DELIVERY PROCESS WORKFLOW
    Completing The Service Visit - The Service Vehicle Delivery Process Workflow
    2 Topics
    |
    1 Quiz
  10. Lesson 10: HOW TO REACH YOUR SALES GOALS WITH SERVICE KEY PERFORMANCE INDICATORS (KPI’S)
    How To Reach Your Sales Goals With Service Key Performance Indicators (KPI’s)
    2 Topics
    |
    1 Quiz
  11. LESSON 11: THE ULTIMATE SERVICE ADVISOR WORKFLOW QUICK REFERENCE GUIDE
    The Ultimate Service Advisor Workflow Quick Reference Guide
    4 Topics
  12. LESSON 12: SCHEDULING SERVICE APPOINTMENTS & CALL SCRIPTS HANDBOOK
    Scheduling Service Appointments & Call Scripts Handbook
    11 Topics
  • ©Copyright Notice All course materials on this site are protected by copyright law. The course material and its content (lessons, topics, exams, videos, slides, and course notes) are protected by copyright law and not to be copied, redistributed, or resold. ©Service Drive Automotive Training. - All Rights Are Reserved.

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RO Sublet Items & Cores Explained

Sublet Items & Repairs

Sublet on repair order means the shop will hire out a portion of the services to an outside company or a third-party supplier to complete the repair. Sublets can be items such as:

  • Car rental
  • Towing fee
  • Storage or impound fees
  • Repairs completed by another shop
  • Body shop repairs
  • Windshield or glass replacement
  • Parts not billed through the parts department

Regardless of the sublet charge, the third-party’s fee is added to the customer’s invoice to recover the expense. To bill the additional cost, you need to create a purchase order (PO).

The PO system ensures the sublet invoice gets charged to the repair order correctly. You can generate the PO while writing the repair order; it could be on a sub-screen or external screen.

Repair shops will mark up the sublet invoice cost (by as much as 30%), meaning if a third-party supplier’s invoice is $100.00, the shop will charge the customer $130.00. Most in-house DMS systems will apply the mark-up automatically for you. However, please note that factory warranties do not allow shops to mark up sublet invoices, so if the third-party supplier’s invoice is $100.00, it has to remain at $100.00.

Purchase orders also post a dollar amount directly to the job-line, even if the accounting department doesn’t have the invoice yet. (The sublet cost may not appear on the repair order without a PO until accounting posts the supplier’s invoice.)

When creating a PO, remember to include the repair order number, the amount, and a brief description of the service provided, plus the shop’s name providing the service.

It’s also good to include additional information such as warranties or guarantees and how long on the repair orders description line. Additional details like these can come in handy should you need to refer to them in the future.

Always check the sublet invoice amount and ensure it matches the customer’s amount of their estimate. However, you will need to contact the customer again if additional repairs are found or additional costs incurred over and above the original estimated cost.

The last step is to attach the original sublet invoice to the repair order. Attached a copy of the invoice to the PO and give it to the accounting department to pay the supplier.

Again, ensure the sublet does not exceed the amount a warranty company will pay for the claim. Additionally, third-party invoices for warranty claims must include the repair order number and the vehicle identification number.

 


Core Charges

Some replacement parts can be refurbished and resold again by automotive manufacturers, like recycling glass bottles. Rebuilding used parts is cheaper and environmentally friendly, so manufacturers charge a deposit to encourage customers and repair shops to return the replaced parts. This deposit is called a “core charge” because it has core value.

When the manufacturer sells a part, they include a clean core charge. These parts include two costs: the first one is the actual part cost, and the second is a deposit for the clean core.

There are two different types of cores; clean and dirty.

  1. “Clean core” is the newly rebuilt part.
  2. “Dirty core” is the old part removed from the customer’s car.

When a repair center installs the clean core on a customer’s car, the parts department or shop passes the clean core fee on to the customer. Core deposits can range from $15.00 to $400.00, depending on their value.

You may see “core deposit” appear on the repair orders job-line. The parts department will reverse the charge when the technician returns the dirty core after they have finished the repairs.

However, some customers choose to keep the old part. If this happens, then the customer is responsible for the “core charge.” Be sure to let the technician know your customer wants to keep the dirty core and the parts department not to ship the old part back. Include the core fee on their repair order and a description stating, “core was charge since Mr. Customer kept original part.”

After the technician returns the dirty core to the parts department, they complete a dirty core claim form and return the old part. The manufacturer reimburses the original core charge once the dirty part is returned to them.

Based on the dirty core condition, manufacturers can reduce the reimbursement amount or reject the whole credit. Dirty cores with missing parts or damage beyond repair will have little value to the manufacturer. In some cases, dirty cores require the original packaging. Without the original box, a core has no value and cannot be returned to the manufacturer.

This is a sample list of auto parts with recyclable components and core charge:

  • AC Compressor
  • Alternator
  • Battery (recyclable type)
  • Brake Master Cylinders
  • Brake Shoes & Calipers
  • Catalytic Converters
  • CV Shafts
  • Cylinder Heads
  • Distributors
  • Engine Blocks
  • Fuel Injector Pumps
  • Power Steering Pumps
  • Starters
  • Transmissions
  • Water Pumps

Manufacturers disassemble and thoroughly clean dirty cores, replace faulty or worn components with new ones, and restore them to their original factory specifications.

 

Shop Tip:

  • Sublet items entail anything not offered or completed at your shop
  • Sublet items are recorded on a separate job-line
  • A “Clean Core” is a new car part that can be remanufactured
  • A “Dirty Core” is the old car part that needs to be returned to the manufacturer