New trader - best warranty and physical card payment provider?

[AutoJacob 34]

31 minutes ago, EPV said:

A third party warranty is an insurance policy. If the vehicle has a fault then under a certain set of circumstances (which have been discussed many times) as a trader you have to put it right. 

All the third party warranty is doing is insuring YOU against having to pay for the repairs. It should make no difference to the customer as they are entitled to said repairs whether you use a third party warranty or not. Whether the punter knows they have these entitlements is a different matter and if by offering a warranty you are reminding them they have these rights on a 10 year old banger then why would you?!

 

This is how they worm their way out of paying out, they're an assurance product not an insurance product hence non regulated.

They aren't as bad as people make out, they do payout sometimes you just have to pester them on behalf of the customer, we do well with warranties and I'm sure they do well of us so it works both ways.

[EPV 631]

4 minutes ago, AutoJacob said:

This is how they worm their way out of paying out, they're an assurance product not an insurance product hence non regulated.

They aren't as bad as people make out, they do payout sometimes you just have to pester them on behalf of the customer, we do well with warranties and I'm sure they do well of us so it works both ways.

I don’t agree that third party warranties are an assurance product, they INSURE you against paying out for what is ultimately your responsibility under the law. 

If someone asks about a warranty it’s your job surely to assure them that any issues with the car under their statutory rights, you will sort. 

[Rory RSC 596]

Most warranties won't pay out in first 30 days ( not much better after 30 days either tbf). First 30 days in the critical time for robust complaint resolution. 

Get a company to do the admin side of things, pay the money into your own pot and then use that to pay when stuff goes wrong. £50.00 / £100 per car. 

If you prep right you will be quids in. If you don't prep right warranty will be the least of your problems.

[Stalker 180]

We should probably make one of these threads a sticky. 

 

These questions constantly get asked by newbies and always attract the same answers. 

 

[MrV 66]

I love this forum already, some fantastic advice on this thread which has completely flipped my approach to my target market, there will be no credit cards or warranties in this house hehe! Also I had my second successful sale today so onto the next one!

[Arfur Dealy 823]

8 hours ago, EPV said:

A third party warranty is an insurance policy. If the vehicle has a fault then under a certain set of circumstances (which have been discussed many times) as a trader you have to put it right. 

All the third party warranty is doing is insuring YOU against having to pay for the repairs. It should make no difference to the customer as they are entitled to said repairs whether you use a third party warranty or not. Whether the punter knows they have these entitlements is a different matter and if by offering a warranty you are reminding them they have these rights on a 10 year old banger then why would you?!

 

 

[Nick M.K. 574]

On 03/06/2018 at 9:16 AM, trade vet said:

Take note,you are getting valuable advice.A lot of us had to find stuff out with trial and error.

Absolutely right. I wish there were forums with as much info as this back in the days when I was starting up. Would've saved me a million pounds. Literally a million. Expensive f***** education :-)

If you take nothing else from this discussion at least take this: Buy a pack of £6 warranty booklets from Lawgistics and give one out with 3 months / 3000 miles warranty with a low claims limit (£300-£600). This gives you a very cost effective way to answer your customer's question about warranty. If your cars are half decent there will not be more than 1 in 20 valid claims which means you will be paying out or fixing stuff worth £300 (to £600) for every 20 sales you make or an average of £21 per sale when you include the £6 booklet cost. 

Edited June 5, 2018 by Nick M.K.

[MrV 66]

2 hours ago, Nick M.K. said:

Absolutely right. I wish there were forums with as much info as this back in the days when I was starting up. Would've saved me a million pounds. Literally a million. Expensive f***** education :-)

If you take nothing else from this discussion at least take this: Buy a pack of £6 warranty booklets from Lawgistics and give one out with 3 months / 3000 miles warranty with a low claims limit (£300-£600). This gives you a very cost effective way to answer your customer's question about warranty. If your cars are half decent there will not be more than 1 in 20 valid claims which means you will be paying out or fixing stuff worth £300 (to £600) for every 20 sales you make or an average of £21 per sale when you include the £6 booklet cost. 

Thanks Nick some great advice there

[MrV 66]

@Nick M.K. when you get chance could you provide the link for the booklets I'm on their site but can't see them?

[EPV 631]

http://www.lawgistics.co.uk/warranties#sthash.7puL24KJ.dpbs

[Nick M.K. 574]

Call them directly on 01480 455500 and order them over the phone. Order one PDI inspection sheet pad while you are at it. 

[EPV 631]

33 minutes ago, Nick M.K. said:

Call them directly on 01480 455500 and order them over the phone. Order one PDI inspection sheet pad while you are at it. 

And the receipt pad.

[KARLOS1982 0]

Hi bud if you are looking for card payment card check paypal card readers - easy to operate, not minimum monthly amount, a bit expensive but money shows straight away on your paypal account balance. Its always full asking price if its a card payment to cover costs. 

Warranties.. its worth reading Consumer right act 2015.. because regardless what you write on invoice you simply have to cover your cars with 3 months warranty.  I do my own warranties and it seems to be paying back in long term only few comebacks but its all down to preparation, knowing the stuff and luck.. saying that I paid recently 400£ to cover engine repair on £1500 car I sold few months back.... (guy was real pain and I didn't fancy my changes at the court)  these things will happened from time to time just have something on the side to cover it...

[EPV 631]

8 hours ago, KARLOS1982 said:

Hi bud if you are looking for card payment card check paypal card readers - easy to operate, not minimum monthly amount, a bit expensive but money shows straight away on your paypal account balance. Its always full asking price if its a card payment to cover costs. 

Warranties.. its worth reading Consumer right act 2015.. because regardless what you write on invoice you simply have to cover your cars with 3 months warranty.  I do my own warranties and it seems to be paying back in long term only few comebacks but its all down to preparation, knowing the stuff and luck.. saying that I paid recently 400£ to cover engine repair on £1500 car I sold few months back.... (guy was real pain and I didn't fancy my changes at the court)  these things will happened from time to time just have something on the side to cover it...

With respect, I think you could do with reading the CRA. You certainly do NOT have to give anyone a warranty and your legal obligation to carry out repairs to certain faults is 6 months not 3 months. 

[Mark101 536]

http://www.carbuyer.co.uk/tips-and-advice/154226/the-consumer-rights-act-and-new-cars?amp

 

Slimmed down version on CRA 15 Focussing on key relevant points

 

[Arfur Dealy 823]

1 hour ago, EPV said:

With respect, I think you could do with reading the CRA. You certainly do NOT have to give anyone a warranty and your legal obligation to carry out repairs to certain faults is 6 months not 3 months. 

And the big one, a fault which constitutes fair “wear n tear” is not covered. 

[EPV 631]

25 minutes ago, Arfur Dealy said:

And the big one, a fault which constitutes fair “wear n tear” is not covered. 

Indeed, hence “certain faults” but I felt I was preaching enough for one day 

[HKQAC 2]

I seen this old thread and thought I'd add my thoughts, hopefully it helps!

1. the warranty company I've using for the past year now give you all the admin support, booklets claims line etc. for free.  

I believe they get there money out of it by selling your old customers there own guarantee's, which hasn't caused any issue's for me before.  (PM for the sales guys details)

2. personally I don't bother with card payments, I do bank transfers, but pay zone I've heard are quite good.

3. If you're just starting out, get your foundations right first.  you should be selling sub 3k motors starting out, and you might sell 1 out of 50 on finance at that price range (from my experience being there myself)  now I'm doing mainly 5-8k motors the finance deals are at least 4 or 5 a month, so more like 1 out of 5 sales are on finance.  If you're doing those cars you need to get premises and get on board with close brothers motor finance 100% IMO.

 

The take away point is don't worry about card payments and finance.  Sort the warranties out and protect yourself with the admin side of things that they take care of for free. 

Hope that helps mate, pm for details or any other Q's

 

[MrV 66]

20 minutes ago, HKQAC said:

I seen this old thread and thought I'd add my thoughts, hopefully it helps!

1. the warranty company I've using for the past year now give you all the admin support, booklets claims line etc. for free.  

I believe they get there money out of it by selling your old customers there own guarantee's, which hasn't caused any issue's for me before.  (PM for the sales guys details)

2. personally I don't bother with card payments, I do bank transfers, but pay zone I've heard are quite good.

3. If you're just starting out, get your foundations right first.  you should be selling sub 3k motors starting out, and you might sell 1 out of 50 on finance at that price range (from my experience being there myself)  now I'm doing mainly 5-8k motors the finance deals are at least 4 or 5 a month, so more like 1 out of 5 sales are on finance.  If you're doing those cars you need to get premises and get on board with close brothers motor finance 100% IMO.

 

The take away point is don't worry about card payments and finance.  Sort the warranties out and protect yourself with the admin side of things that they take care of for free. 

Hope that helps mate, pm for details or any other Q's

 

thanks for the advice HKQAC