The Pain of Tire Warranties for Manufacturers and Service Centers
Calculating the Tire Replacement Discount
Once a set of tires doesn’t perform to the warranty requirements, the service center has to calculate the replacement cost. This is done using this formula:
Retail price of the tire x the percentage of mileage received = replacement cost
If a tire warranty for a tire is 80,000 miles, the dealer’s retail price is $80, and a customer’s tire wore out at only 50,000 miles of usage, then:
$80 x 63% = $50.40
The tire warranty generates a huge amount of manual work and added costs as a result. That includes costs related to logistics, checking, and brand damage. It does not generate any new business, either. Rather, it creates a strain on OEMs and dealers’ relationships when warranty claims become more common, abused, or rejected.
Here’s how it works.
- Returned tires are digitally identified using DOT, and the tread checked with Anyline Tire Treads Scanner by tire technicians in the inspection center.
- Barcode reading is also used to match the claim form versus the brand and serial numbers on the tire.
- All information is stored in the claim management system. This information can also be integrated into a Dealer Warranty App or web portal to simplify the process and reduce the number of returns.
- A digital tread inspection by the dealer will allow the tire OEM to reject the claim prior to the tire shipment to the control center.
There are many benefits to streamlining the tire warranty process, including:
- Reducing logistics and reimbursement costs
- Reducing the number of returned tires and the ratio of accepted claims
- Faster claim resolution
- Standardization of tire tread measurement across OEM facilities
- More fluid communication and administrative workflows
Anyline is a reliable solution that minimizes delays, increases productivity, and streamlines the entire process.