Warranty companies are they worth it?

[macffar 0]

I'm currently using warranty wise to provide my warranties but as a matter of fact its just money down the drain>>>>>> I had warranty assist chasing me for business I ask my business manager to look into the small print on their so called gold cover with other add on's it turns out to be money in the drain for one reason it doesn't cover the clutch fully.......................................

Any one in the wilderness with better alternative that will be value for money.  

[betginge 73]

Your own warranties, keep the profit 

[Ocsltd 133]

34 minutes ago, betginge said:

Your own warranties, keep the profit 

This.

[Reggaj 12]

Like 

[justina3 518]

amen for self warranties, we now have a mechanic who does his own work as well as ours so he is on site most days as he uses our workshop, saves a small fortune. 

 

 

[LawJaw 50]

No comment

[macffar 0]

15 hours ago, betginge said:

Your own warranties, keep the profit 

I thought so.....cos at the end of the day I end up footing the bill myself.........

[Lawtongate 0]

I use to use WarrantyWise , got sick of them saying NO to genuine faults . Waste of time 

[justina3 518]

7 hours ago, LawJaw said:

No comment

I know no comment means you dont wish to say anything but any chance of a hint as to what you mean ? 

[LawJaw 50]

Hi Justina3... my opinion could be a perceived bias, therefore no comment.

However here's a hint, google 'run your own warranties' 

[John13 0]

I've tried and scrapped both AA and RAC in the past year for failure to payout on genuine claims. It's far more cost effective to keep the money you'd be paying them aside and offering your own warranties/carrying out your own repairs. 

[Rory RSC 596]

45 minutes ago, tradex said:

I seem to have customers that come a long way for some of cars, and as such, a UK cover warranty with 'no return to dealer' is a good asset to have.

You can do that with an administered warranty that is self funded.  They deal with everything using your own pot. 

Any surplus left at the end of any given period is yours. And their will be money left. 

Saved an absolute fortune for my business that way. 

[andymc1973 199]

all warranties are designed not to pay out along with all most  insurance products, the only way I could ever deal with screamers was self authoristaion but you needed to be a large volume seller of the product

[betginge 73]

I was unsure of self admin warranties but when you look into it, its the only logical way.

If i sell 10 cars this month lets say paid  £1500-£1800 going to a warranty firm, if something went wrong in month 1, I would bet my best pair of shoes they would not even think of paying out for a genuine claim. so  then pay £200 to resolve the claim, Im now £2k down

Month 2 I would of just forked out near £4k for 20 cars sold and the warranty company still trying to dodge.

 

 

[Paulusk2z 1]

so... i have paid over £2500 to autoguard over the last few months and only now have i learnt about self funded warranties! i have been thinking of dropping autoguard for a while now and thing this may be the way forward for me!

Can anyone explain to me in a bit more detail, how it works???

[betginge 73]

there are a few firms offering self admin, am sure someone will moonlight some names 

 

[Paulusk2z 1]

well, i have found a company called "lawgistics" they seem pretty well on the money! i think i might start using them!

But.. i am starting on a new tactic right now, that will have to be the insured route! i am selling a couple of my cars with 12 month warranty and a couple with 15 months! just to try and get things moving again!

once i get back to where i want to be, i will be buying a warranty book pack from lawgistics and i will be running my own warranties! i will have to build up my bank balance in my business savings account 1st though.

[Rory RSC 596]

You don't need to.

just pay £25 /£50 /£100 into an administered warranty account. 

Soon builds up.

come back and thank me in 6/12 months time.

its probably my main regret in this business that I gave warrantywise so much for so long and had to fight and argue to get things covered which was just aggro and stress I didn't need.

 

[justina3 518]

I was wondering that, whats the difference between just putting some money under my bed 

 

[betginge 73]

They deal with customers who call them to make a claim, they supply dealers (you) with warranty booklets to give out on sale of a vehicle. you deposit money into an account, £80-£125 example,  they hold to use as the fund for claims. If a screamer calls them they will asses the legal requirement of the claim as per your warranty terms you agreed and the rights customer has under CRA, They advise you accordingly and you can make a decision on what to do. the point being its saves you a lot of money and time, you will soon build up a pot even after paying out for claims.

Only thing I would say is that don't go to deep into warranty term, just because warranty firms offer 12 months etc which sounds great in reality there not worth shovel of sh*t.   I am going to do 3 months terms but others may do 6 months. I wouldn't do 12 months self admin warranty as your chaining yourself to them longer than is required and it could then become uneconomical.

I am new to this self admin warranty, but am convinced now with some sound advise from @Rory RSC that its the way forward.

[NickA1 0]

I would like to shed some light on 'administered warranties' and how they can benefit dealers.

Standard warranties no longer align with a dealer's responsibilities or a customer's needs. A warranty only covers unexpected failure of a covered component, a dealer wants to cover anything that could be deemed 'inherent at the point of sale' and a customer wants both covered!

An administered warranty gives all the benefits of using a warranty provider (an after sales contact, a product to sell and make profit, a barrier between customer and dealer for minor issues, national and EU coverage etc) but none of the drawbacks (paying for cover and paying again when the customer complains something isn't covered, huge cost with little or no rebate, no control).

The real benefit is that YOU choose what's paid and what isn't - no more declined claims unless you agree and want a bigger return at the end of the term.

You simply pay an admin fee to have the calls handled, garages dealt with, booklets, point of sale, account management etc and then an amount to cover claims (or you can keep this money yourself), customers then get the reassurance of having a warranty and you get the profit of sales, VAT reclaim on claims, savings in the claims fund and no stress! 

I'm sorry if this seems like a sales pitch, it's really just a passionate plea to do something today that could transform your profitability.

If anyone would like more details please get in touch with me and I will be happy to explain this in full with no pressure to sign up. If you are ready to make the step though you will find dealers on here who use us and we can give details of other dealers who will rave about our services.

Nick McDonald - A1 Approved Ltd

07983 738259

 

[Tom 164]

Sadly I've gone the other way, started using a warranty company as doing it yourself just means the customer knows they can just come back to you and take the piss. I had people just turn up out the blue with problems and/or ringing up in the evening or on a sunday afternoon was a common one, complaining about a fault. I got fed up with it in the end and now I'm using a company, complaints have dropped by 90%, the phone no longer rings at stupid hours and the small 10% that do call I tell them to call the warranty company and never hear from them again. Yes it costing me more money but the pain it takes away is worth it!

[Rory RSC 596]

13 hours ago, Tom said:

Sadly I've gone the other way, started using a warranty company as doing it yourself just means the customer knows they can just come back to you and take the piss. I had people just turn up out the blue with problems and/or ringing up in the evening or on a sunday afternoon was a common one, complaining about a fault. I got fed up with it in the end and now I'm using a company, complaints have dropped by 90%, the phone no longer rings at stupid hours and the small 10% that do call I tell them to call the warranty company and never hear from them again. Yes it costing me more money but the pain it takes away is worth it!

Until its blatantly something that the warranty should cover and the warranty company decline to cover it. And you are then left arguing with some 17year old in the warranty company trying to resolve the issue, sending in proofs, chasing up not having heard a response etc etc. 

You then end up paying to fix it for the customer out of your own pot and you have paid for the warranty.

Hence why the administered warranties with your own fund and all the benefits that brings but with A1 warranties (other companies may exist) dealing with the claim etc and being the external warranty provider really do give the best of both worlds.

 

 

[betginge 73]

48 minutes ago, Rory RSC said:

Until its blatantly something that the warranty should cover and the warranty company decline to cover it. And you are then left arguing with some 17year old in the warranty company trying to resolve the issue, sending in proofs, chasing up not having heard a response etc etc. 

You then end up paying to fix it for the customer out of your own pot and you have paid for the warranty.

Hence why the administered warranties with your own fund and all the benefits that brings but with A1 warranties (other companies may exist) dealing with the claim etc and being the external warranty provider really do give the best of both worlds.

 

 

I assume @Rory RSC that if a screamer calls your office like @Tom was experiencing you just divert them to the Warranty admin team at A1. I have all this to come in the next few weeks when we go live with the new pitch. We do run a in house fund with the bangers we sell at the minute but we rarely have any come backs on that side to be honest. Be interesting to see how different it is when selling cars of greater value, and how customers will act when a problem arises.

[Tom 164]

9 hours ago, Rory RSC said:

Until its blatantly something that the warranty should cover and the warranty company decline to cover it. And you are then left arguing with some 17year old in the warranty company trying to resolve the issue, sending in proofs, chasing up not having heard a response etc etc. 

You then end up paying to fix it for the customer out of your own pot and you have paid for the warranty.

Hence why the administered warranties with your own fund and all the benefits that brings but with A1 warranties (other companies may exist) dealing with the claim etc and being the external warranty provider really do give the best of both worlds.

 

 

No had any problems yet! How much do A1 take out to handle the calls?