Warranty Provider for Small Volume Sales

[BAS 4]

So, a couple of warranty questions if you would humour me?

Keeping in mind that (for now) I am trading from home and have a current stock of 3 cars that I would expect to retail at £1.5k, £2k and £7k respectively, what advise would you give with formal warranty provision?  Should I warranty the lot or not bother about the cheapies?  Should I buy into an insurance backed scheme or self underwrite with Lawgistics or similar?  Should I mix and match dependant on value?  Where best to buy if I go down the insurance route?

My own assessment of risks says that maybe the cheapies are more likely to go wrong with minor niggles than the newer, more expensive car - but the latter, if subject to a catastrophic failure, could stand me a bigger loss!   I'm torn between which type would be most appropriate for which situation.

My other question relates to Lawgistics Driver Options offerings - any thoughts on the pros and cons between the "self administered" or "Lawgistics administered" products?

Thanks in anticipation

 

Mike

Edited September 6, 2018 by BAS

[BHM 994]

Don’t bother. You’re giving false promises to customers & are asking for comebacks.

As for “self funded warranties” etc. it’s dead easy as a one man band - if you feel the need to dip into your own pocket then do so. Quite why traders need to put it in separate a/c or get someone else to look after their money is beyond me. 

If you ask me your making things to complicated - you’re a doorstepper so K.I.S.S. & forget all the pitch talk. Your punters will be buying on price. Years ago it took me a year or so to work that out.

[EPV 631]

1 hour ago, BAS said:

So, a couple of warranty questions if you would humour me?

Keeping in mind that (for now) I am trading from home and have a current stock of 3 cars that I would expect to retail at £1.5k, £2k and £7k respectively, what advise would you give with formal warranty provision?  Should I warranty the lot or not bother about the cheapies?  Should I buy into an insurance backed scheme or self underwrite with Lawgistics or similar?  Should I mix and match dependant on value?  Where best to buy if I go down the insurance route?

My own assessment of risks says that maybe the cheapies are more likely to go wrong with minor niggles than the newer, more expensive car - but the latter, if subject to a catastrophic failure, could stand me a bigger loss!   I'm torn between which type would be most appropriate for which situation.

My other question relates to Lawgistics Driver Options offerings - any thoughts on the pros and cons between the "self administered" or "Lawgistics administered" products?

Thanks in anticipation

 

Mike

Depends on why you want to offer warranties. To protect yourself against payouts? Then it's a third party warranty but don't expect a payout within the first 30 days.

If it's to protect the customers, they're already protected.

If it's to make the customers fell better about their purchases then run your own. Ultimately when push comes to shove, there are certain things you have to pay out for. A warranty either protects you against the payout or it doesn't. Beyond that it's smoke and mirrors and the best thing to do is keep as much money as you can in your own pocket. There will be plenty of other opportunities to lose it.

[MattR 177]

if you want the reassurance that if theres a problem, its not you paying, then you go to a warranty company and hope they dont refuse the claims in the future. If you want full control, you take the Lawgistics self administered approach. Some you'll win, some you'll lose.

I know theres some on here who mix and match depending on the car. Want the security? Do a Warranty, but pick carefully and dont be afraid to change if the company reject claims.

[andymc1973 199]

they wont pay out as youre not doing the volume

[MrC 142]

When I was dealing cars i had nothing but trouble with warranties, You do invite trouble when the warranty company wont pay out and you have an ectra irrate customer. I stopped giving warranties and life got easier.

On my campers I offer 12 months on the new build part of the camper. Bare in mind the appliances have 12 months manufacturers warranty so as long as I screw it all together well they will be fine.

As for the vehicle itself they are covered by their consumer rights. And I stick totally to the word of CRA15.  

 

 

[Arfur Dealy 823]

4 hours ago, MrC said:

When I was dealing cars i had nothing but trouble with warranties, You do invite trouble when the warranty company wont pay out and you have an ectra irrate customer. I stopped giving warranties and life got easier.

As for the vehicle itself they are covered by their consumer rights. And I stick totally to the word of CRA15.  

 

 

Spot on. Warranties will attract grief. 

[BAS 4]

I'm not looking to circumvent CRA, I intend to build my business on helpfulness and goodwill (without allowing p1ss taking!).  Providing a written warranty booklet of some sorts I feel gives an element of professionalism vs just saying "bring it back if you have any probs" and also may make a few think twice about taking said p1ss!

Edited September 7, 2018 by BAS

[have a word with the wife 299]

a warranty is an addition, it doesnt take away rights, so the rights are better than a warranty, and covers far more than any warranty, explain that "correctly" to the customer and you dont need the hassle of  warranty.

when i doorstepped my customers didnt expect a warranty, thought they would be paying more for the car with a warranty, and didnt want a warranty because they thought i was trying to be a [how can i put this without upsetting doorsteppers? ] proper trader with a pitch and associated headaches ?

[MrC 142]

2 hours ago, BAS said:

I'm not looking to circumvent CRA, 

you can't even if you wanted

[EPV 631]

2 hours ago, BAS said:

I'm not looking to circumvent CRA, I intend to build my business on helpfulness and goodwill (without allowing p1ss taking!).  Providing a written warranty booklet of some sorts I feel gives an element of professionalism vs just saying "bring it back if you have any probs" and also may make a few think twice about taking said p1ss!

It’s smoke and mirrors. 

Naturally most people buying a £5k car want to know that if it blows up the day after purchase they have some recourse. 90% of them have no idea of their rights and think “sold as seen” is still a thing so a warranty gives them a warm fuzzy feeling. Smoke and mirrors. 

[BAS 4]

12 hours ago, MrC said:

you can't even if you wanted

Fair point, but we all know that many try!

12 hours ago, EPV said:

It’s smoke and mirrors. 

Naturally most people buying a £5k car want to know that if it blows up the day after purchase they have some recourse. 90% of them have no idea of their rights and think “sold as seen” is still a thing so a warranty gives them a warm fuzzy feeling. Smoke and mirrors. 

That's exactly where I was coming from, with the added potential bonus of income generation from upselling from basic.

[MrC 142]

5 hours ago, BAS said:

Fair point, but we all know that many try!

That's exactly where I was coming from, with the added potential bonus of income generation from upselling from basic.

Upselling from shite to further shite at the risk of leaving your customer exposed to disappointment for a longer period. 99% of people never read the small print, Your customer will be under the illusion they have some kind of cast iron no quibble warranty. 

Lost count of the amount of times Warrantywise quoted wear and tear or the missing service stamp 7 years ago on the 10 yer old shit box and would not pay out. Then telling the customer to take it back to the dealer for a solution!.. Yeah thanks for that. 

Of course Im giving you the shit side of the coin but you will come across it. 

 

[David Horgan 564]

Do your own warranty , then the upsell goes in your wallet " simples " 

Try doing the sums of buying 3rd party warranty who wont pay anyway . Say £200 for 6 months X if your small 4 cars a months = £800 X 12 months = £9600 saved ,no brainer isn't it . 

Bigger you get more you save .

Then when your into it , go upselling 50% up sell = £199 to cover more items for same 6 months , £398 a month based on 4 sales = £4,776 profit . 

Prep Prep Prep is the golden rule , then give a warranty of your own , and watch the money mount up instead of flushing it down the drain hole of the 3rd party guys . 

Just my way of thinking , I sell 19/25 cars a month , 70% upsell ,do the sums  makes me smile . 

3rd Party warranties are so Yesterday thinking now days in my head 

[tradegirl 112]

17 hours ago, David Horgan said:

Do your own warranty , then the upsell goes in your wallet " simples " 

Try doing the sums of buying 3rd party warranty who wont pay anyway . Say £200 for 6 months X if your small 4 cars a months = £800 X 12 months = £9600 saved ,no brainer isn't it . 

Bigger you get more you save .

Then when your into it , go upselling 50% up sell = £199 to cover more items for same 6 months , £398 a month based on 4 sales = £4,776 profit . 

Prep Prep Prep is the golden rule , then give a warranty of your own , and watch the money mount up instead of flushing it down the drain hole of the 3rd party guys . 

Just my way of thinking , I sell 19/25 cars a month , 70% upsell ,do the sums  makes me smile . 

3rd Party warranties are so Yesterday thinking now days in my head 

Can someone explain this to me? You sell the self-funded warranty to the customer? At what cost?
 

[MrC 142]

Keep it simple..

Why not just chuck £200 per car sold in to a bank account to pay for legit repairs that come under CRA15.

Dont give them a warranty.  Dont tell them you put money away. Just smile, shake their hand and send them on their way. 

 

[EPV 631]

46 minutes ago, tradegirl said:

Can someone explain this to me? You sell the self-funded warranty to the customer? At what cost?
 

Whatever you like. Take a look at what warranty wise want and knock £50 off it. 

[LS4U 0]

Try Blackstar Warranties they offer a self funded pot scheme, they give you free unlimited legal advice over the telephone for when you get the customers who want to come back and complain and will tell you what you need to do in relation to your legal obligations under the Consumer Rights Act, they give you all your glossy sales warranty booklets, sales brochures etc.  they only charge £12.50 + Vat /case. Superb value and not aware of anyone else providing this.

 

[EPV 631]

7 minutes ago, MSG said:

Try Blackstar Warranties they offer a self funded pot scheme, they give you free unlimited legal advice over the telephone for when you get the customers who want to come back and complain and will tell you what you need to do in relation to your legal obligations under the Consumer Rights Act, they give you all your glossy sales warranty booklets, sales brochures etc.  they only charge £12.50 + Vat /case. Superb value and not aware of anyone else providing this.

 

Do you have a link to their website? 

[NOACROSS 414]

If your are going to go down the warranty route, or self funded warranty- I’d recommend WMS. 

Or Lawgistics if self warranty. 

Where in the country are you out of interest?

[EPV 631]

1 minute ago, NOACROSS said:

If your are going to go down the warranty route, or self funded warranty- I’d recommend WMS. 

Or Lawgistics if self warranty. 

Where in the country are you out of interest?

I’ve had an issue with Lawgistics self funded warranty. 

Their claims hotline in their brochures is shit. A punter rang 5 times on Friday and couldn’t get through. I rang yesterday and left a message. No reply. 

I’ve got an email out to the lady who set my self funded warranties up and it’s a pissed off email so let’s see what she’s got to say. It’s not much help when you pay for them to run the admin and no one can actually get an answer. 

Will update tomorrow. 

[NOACROSS 414]

Oooh. Interesting. Thanks not good.

I’ve only got good things to say about Lawgistics, but I’ve never used them for warranties. I use WMS as the area manager is great and I’ve known him many years.

However, I mostly just do our own return-to-base warranties, unless they’re out of the area or it’s something likely to poop itself or complicated (German diesel/german auto..)

[LS4U 0]

Here is the Blackstar Warranties link that you asked for https://www.blackstarwarranties.co.uk/ 

[EPV 631]

Just now, NOACROSS said:

Oooh. Interesting. Thanks not good.

I’ve only got good things to say about Lawgistics, but I’ve never used them for warranties. I use WMS as the area manager is great and I’ve known him many years.

However, I mostly just do our own return-to-base warranties, unless they’re out of the area or it’s something likely to poop itself or complicated (German diesel/german auto..)

This is a current subject for me. 

What to do in the event of a punter some distance from you (75 miles say) who has had the car a week and it’s sprung an oil leak? I feel bad asking for them to return it back to base when they’ve only had it a week? 

What about if the eml came on and the car wasn’t in limp mode?

just hypothetical examples of situations to deal with if I began to self warrant (which I do) and self admin (which I don’t)

[NOACROSS 414]

Had this many times over the years. If it’s only a couple of weeks in to their ownership, then the warranty will obviously be useles and won’t cover oil leaks anyway. 

If it’s my warranty, then it’s spelled out many times before and during hadover that they’ll need to get it back to us if any issues. They sign to say they understand too.  

In reality, I nearly always cave /feel sorry for them and try to find an independent garage near them to take a look. Usually I then ‘look big and pay’. 

If they’re an arse, I insist on being able to inspect the junk. (It’s rare though due to my buying profile.)