“I saw some data recently… that showed that repair costs on EVs were trending up. I think you’ll see [customer pay] opportunities are falling with EVs, but you’re going to see warranty going up. You’re going to have this fundamental shift. Typically, you have 60, 65 percent of your service department revenue coming from customer payments. And call it 30 percent, 35 percent comes from warranty. I think you’re going to see a shift in those ratios. That means a couple of things. Most fundamentally, if there’s less [customer pay] opportunities and there are more warranty opportunities, you don’t need to rethink how you market your service department, how do you capture that warranty work from customers? [It’s] much more important now that you make sure you are getting all warranty-qualified vehicles in your [surrounding area] to go to the dealership. There’s a fundamental rethink that needs to happen across every aspect of the service department — how you market, how you process your warranty claims, how your technicians are trained, how you manage the customer. I haven’t heard a lot of talk about rethinking all of that, and it’s just around the corner. We really need to think about how we’re going to manage this transition.” — Jim Roche, CEO of warranty processing platform WarrCloud, on “The Golden Rule” podcast hosted by Jason Harris.