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Due diligenceExpert answer · 1 min read

How do I check a powersports dealer’s service department and warranty claim queue?

Ask to see the open work orders and the list of warranty claims still waiting on the manufacturer, each with a date. Look at how old the oldest items are, which jobs are stuck on parts, and which claims came back unpaid. An aging queue can mean money the shop is owed but may never collect.

Start with the work order list. Ask for every open job, the date it was written up, the technician assigned and the reason it is still open. Jobs that sit for weeks usually point to a parts shortage, a technician shortage or a customer who stopped answering. Each has a different fix, so ask the service manager which one it is.

Then look at warranty claims on their own. Ask which claims were submitted, which were paid, which were rejected and why. Rejected claims often trace back to missing paperwork or late filing, which tells you about the shop’s habits. Ask whether the dealer has been charged back for past claims, and whether any dispute with the manufacturer is still open.

Finally, match the queue to the books. Claims owed to the dealer should appear as receivables, and your accountant can tell you whether the amounts look reasonable. Walk the service lane and talk to a technician if the seller allows it. Ask who handles claims paperwork and whether that person is staying. If the manager cannot show claim dates and outcomes without searching, treat that as a finding about how the department is run.

Key takeaways

  • Get open work orders and open claims as dated lists, not a verbal summary.
  • Ask why rejected claims were rejected, and whether any chargebacks or disputes remain open.
  • Check that claims owed show up in the books, and ask who files them.

Sources

This answer is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Business Development Bank of CanadaGovernment
    How to conduct due diligence when buying a business
    bdc.ca·Checked Oct 21, 2026
  2. 02
    Business Development Bank of CanadaGovernment
    What are the steps to buying a business?
    bdc.ca·Checked Oct 21, 2026

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