South Carolina Warranty Reimbursement
South Carolina Dealers: Your State Law Guarantees Higher Warranty Rates
S.C. Code § 56-15-45 · 13-18% typical uplift
South Carolina dealers can still claim higher warranty reimbursement rates. Let us show you how.
South Carolina Warranty Reimbursement Law
South Carolina Regulation of Manufacturers, Distributors, and Dealers Act includes warranty reimbursement provisions.
S.C. Code § 56-15-45
State Tier
standard
Submission Deadline
No specific statutory deadline
OEM Response Window
45 days
What This Means for Your Dealership
South Carolina strengthened its warranty reimbursement law in 2021, requiring manufacturers to pay dealers 'reasonable compensation' defined as the retail rates charged to nonwarranty customers. This amendment brought South Carolina closer to the standard of stronger states.
The updated law means South Carolina dealers have a clearer path to retail-rate reimbursement than before. If you haven't submitted since the 2021 amendments, now is the time to take advantage of the strengthened protections.
Key Provisions
- Manufacturers must pay 'reasonable compensation' for warranty repairs
- Reasonable compensation defined as retail rates charged to nonwarranty customers
- Rates cannot be unreasonable compared to market standards
- 45-day response window for manufacturer review
- 2021 amendments strengthened retail-rate requirements
What's Excluded from Calculations
The following repair types and transactions are typically excluded when calculating your retail warranty reimbursement rate:
- Goodwill and policy repairs
- Internal and employee vehicles
- Wholesale transactions
- Manufacturer recall campaigns
Full Statute Text
S.C. Code § 56-15-45 — South Carolina Warranty Reimbursement Law
Source: South Carolina State Legislature — This text is provided for informational purposes. Always consult the official state legislature website for the most current version.
Example: How Much Could You Recover?
A South Carolina dealership processing 190 warranty ROs per month at $235 average generates $536,000 annually. With 13-18% uplift, that's $70,000-$96,000 in additional annual revenue.
Pro Tips for South Carolina Dealers
The 2021 amendments significantly strengthened South Carolina's law — if you filed before then, consider resubmitting under the new framework
Neighboring North Carolina's strong law provides a useful benchmark for what fair reimbursement looks like
'Reasonable compensation' at retail rates is now the law — use this language explicitly in your submission
South Carolina Warranty Reimbursement FAQ
How did the 2021 amendments change South Carolina's law?
The 2021 amendments strengthened South Carolina's warranty reimbursement provisions by defining 'reasonable compensation' as the retail rates dealers charge to nonwarranty customers.
What is 'reasonable compensation' under South Carolina law?
Under S.C. Code § 56-15-45, reasonable compensation means the retail rates charged by the dealer to nonwarranty customers, provided those amounts are not unreasonable.
How much can South Carolina dealers recover?
South Carolina dealers typically see 13-18% increases, translating to $70,000-$96,000 per year for a mid-size dealership.
Estimate Your Annual Uplift
See what your dealership could be earning in additional warranty reimbursement.
Estimated Annual Uplift
South Carolina is a standard-tier state for warranty reimbursement. Learn more →
Nearby & Similar States
Frequently Asked Questions
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