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.

Calculate Your Uplift ↓

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 § 56-15-45South 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

1.

The 2021 amendments significantly strengthened South Carolina's law — if you filed before then, consider resubmitting under the new framework

2.

Neighboring North Carolina's strong law provides a useful benchmark for what fair reimbursement looks like

3.

'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.

1
200
$

Estimated Annual Uplift

$74,880$103,680

South Carolina is a standard-tier state for warranty reimbursement. Learn more →

Nearby & Similar States

Frequently Asked Questions

Stop Leaving Money on the Table

Join the dealerships reclaiming what state law says they're owed. Zero risk. Zero upfront cost.