Service Departments FAQ
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Q: Must my service department return all replaced parts to customers?
A: The only replaced parts that must be returned to the customer are those that the customer has requested prior to the work being done. NHADA recommends the customer be notified of his/her right to the return of replaced parts prior to the work being done. http://gencourt.state.nh.us/rsa/html/XXXI/358-D/358-D-9.htm
Q: When I provide a written estimate to my service customers and I find additional work is necessary, may I proceed without authorization?
A: You would certainly be at risk. The law requires you to receive oral permission from the customer to proceed with additional work. NHADA advises that any telephonic communication be properly documented.
Q: From time to time, I may exceed the estimate. At what point am I liable?
A: You may exceed the written estimate by 10 percent and stay within the law. The customer does not have to pay for any repair work performed in excess of 10 percent of the written estimate, unless you have written or oral consent. http://www.gencourt.state.nh.us/RSA/html/XXXI/358-D/358-D-mrg.htm (Sections 5 and 12)
Q: If I subcontract some work out to another shop, am I still responsible for their work?
A: Yes. Any work done by a subcontractor automatically becomes your responsibility to your customer.
Q: How long must I maintain copies of my repair orders?
A: One year. http://gencourt.state.nh.us/rsa/html/XXXI/358-D/358-D-10.htm (V)
Q: Do I have any notice requirements I must provide the consumer prior to service work being done?
A: All motor vehicle repair facilities must conspicuously post a notice of no fewer than 6 square feet, in clear view to the customer, that outlines their rights as a service customer. This notice is available from NHAD Services. http://gencourt.state.nh.us/rsa/html/XXXI/358-D/358-D-11.htm
Q: I understand that when a manufacturer audits my dealership, they are limited in the number of years they can go back in the audit. What are the specific provisions of the law regarding manufacturers' audits?
A: Your manufacturer has the right to audit warranty claims for one year and reimbursement programs for two years.
Q: In dealing with minors, how should repair orders be handled?
A: Make certain that an adult is jointly or individually responsible for vehicle repairs. A minor authorizing extensive repairs could attempt to void a service bill based on the fact that he/she is under the age of 18, claiming that he/she is not responsible for payment.
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