New York Gov. Kathy Hochul just signed a new bill into law requiring automakers to cover all costs associated with warranty repair, plugging a major loophole causing headaches for dealers and consumers.
Bill A4066B, signed by New York Governor Kathy Hochul earlier this week, changes how manufacturers reimburse dealers in the state for warranty and recall work.
Previously, retailers were reimbursed for warranty repairs using pre-determined time allowances set by automakers.
This meant that service teams who took longer than the allowed time were left unpaid by the manufacturer for their work.
Now, automakers must reimburse dealers based on retail labor time guides for non-warranty work. This means service teams are more likely to be paid for the actual time spent on repairs.
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