Warranty Provider for Small Volume Sales

[LS4U 0]

Normally under any warranty there is a standard provision for the customer to get the car diagnosed to ascertain the cause of the fault.  Whether you are on an insured or self funded scheme this is the same.  Once the car has been diagnosed you will then be able to decide what to, for example if it just a leak from the sump plug and a relatively cheap fix then I would presume you would just elect to get a local garage near the customer to complete the repair.  If it was something more major you may then elect to take an alternative form of action.  If it is a serious fault then its most likely that an insured warranty would not cover it in any event as it would be deemed to be pre-existing.  However with the Blackstars Warranty as it is a self funded scheme they give us the legal advice as to what we need to do and for example they would advise that we need to carry out a repair or the customer would be able to reject under the CRA 2015, or they may advise that it does not need to be covered/repaired and the customer could not reject.  The self funded scheme gives you so much more flexibility and ultimately higher customer satisfaction as you control what you do. Also rather than lining the pockets of the warranty company we are now retaining the profit in the business above and beyond any chassis profit from the car. 

 

2 minutes ago, NOACROSS said:

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.)

The above is typical scenario that many dealers find themselves in and is the huge downside to the insured warranty.  When a dealer then pays direct for the repair they are then deemed to have used their one opportunity to inspect and repair the vehicle and if the customer gets a new issue in the remaining period of the 6 months of the customers ownership the customer can then reject the car.  If the warranty company are deemed to have carried out the repair then this is not the case and the dealer then retains there ability to still be able to inspect/repair the vehicle as a later stage without the customer exercising their final right to reject.

[NOACROSS 414]

9 minutes ago, MSG said:

Normally under any warranty there is a standard provision for the customer to get the car diagnosed to ascertain the cause of the fault.  Whether you are on an insured or self funded scheme this is the same.  Once the car has been diagnosed you will then be able to decide what to, for example if it just a leak from the sump plug and a relatively cheap fix then I would presume you would just elect to get a local garage near the customer to complete the repair.  If it was something more major you may then elect to take an alternative form of action.  If it is a serious fault then its most likely that an insured warranty would not cover it in any event as it would be deemed to be pre-existing.  However with the Blackstars Warranty as it is a self funded scheme they give us the legal advice as to what we need to do and for example they would advise that we need to carry out a repair or the customer would be able to reject under the CRA 2015, or they may advise that it does not need to be covered/repaired and the customer could not reject.  The self funded scheme gives you so much more flexibility and ultimately higher customer satisfaction as you control what you do. Also rather than lining the pockets of the warranty company we are now retaining the profit in the business above and beyond any chassis profit from the car. 

 

The above is typical scenario that many dealers find themselves in and is the huge downside to the insured warranty.  When a dealer then pays direct for the repair they are then deemed to have used their one opportunity to inspect and repair the vehicle and if the customer gets a new issue in the remaining period of the 6 months of the customers ownership the customer can then reject the car.  If the warranty company are deemed to have carried out the repair then this is not the case and the dealer then retains there ability to still be able to inspect/repair the vehicle as a later stage without the customer exercising their final right to reject.

The customer can’t reject if it’s a ‘different’ fault. Cars are complicated and it’s not the same as for a new washing machine. 

How I also get round this nonsense potentially rearing its idiot head is we will say the job is still ‘open’ and will need to be used/tested and reinspected before the fault can be closed.

 

Edited September 9, 2018 by NOACROSS

[EPV 631]

10 minutes ago, NOACROSS said:

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.)

Yeah this is self funded warranty or what is actually the truth, my responsibility under the cra. As i’ve said before warranties are just smoke and mirrors. 

I think although I get the billy to sign up saying they must return the vehicle to me in the event of a statutory repair. I think from now on I will refer to this a few times during the handover and just flat out refuse to deal with anything remotely. It’s not a great situation but a rare one at least. 

15 minutes ago, MSG said:

Normally under any warranty there is a standard provision for the customer to get the car diagnosed to ascertain the cause of the fault.  Whether you are on an insured or self funded scheme this is the same.  Once the car has been diagnosed you will then be able to decide what to, for example if it just a leak from the sump plug and a relatively cheap fix then I would presume you would just elect to get a local garage near the customer to complete the repair.  If it was something more major you may then elect to take an alternative form of action.  If it is a serious fault then its most likely that an insured warranty would not cover it in any event as it would be deemed to be pre-existing.  However with the Blackstars Warranty as it is a self funded scheme they give us the legal advice as to what we need to do and for example they would advise that we need to carry out a repair or the customer would be able to reject under the CRA 2015, or they may advise that it does not need to be covered/repaired and the customer could not reject.  The self funded scheme gives you so much more flexibility and ultimately higher customer satisfaction as you control what you do. Also rather than lining the pockets of the warranty company we are now retaining the profit in the business above and beyond any chassis profit from the car. 

 

The above is typical scenario that many dealers find themselves in and is the huge downside to the insured warranty.  When a dealer then pays direct for the repair they are then deemed to have used their one opportunity to inspect and repair the vehicle and if the customer gets a new issue in the remaining period of the 6 months of the customers ownership the customer can then reject the car.  If the warranty company are deemed to have carried out the repair then this is not the case and the dealer then retains there ability to still be able to inspect/repair the vehicle as a later stage without the customer exercising their final right to reject.

That’s not right. You’ve got confused. If the dealer cannot repair the fault first time THEN the billy can reject for a refund. If a different fault appears then you have one shot at that too. 

One way around it is as Noacross suggests, another is to get in writing the billy accepting that the repair is a contractual repair under warranty, not a statutory repair, a contractual repair of which you can have as many as you like. 

[LS4U 0]

I agree with you EPV and that is what they do at Blackstar Warranties on the self funded scheme and I think that is one of the main benefits over an insured warranty scheme as it appears to give so much more flexibility and stop the customer being able to move to reject the vehicle.

[Arfur Dealy 823]

10 hours ago, MSG said:

I agree with you EPV and that is what they do at Blackstar Warranties on the self funded scheme and I think that is one of the main benefits over an insured warranty scheme as it appears to give so much more flexibility and stop the customer being able to move to reject the vehicle.

Can’t seem to find a web link ? 

[LS4U 0]

https://www.blackstarwarranties.co.uk/

[andymc1973 199]

Try pissing about and claiming through sure check, that’s a warranty .....

self warranty 

[David Horgan 564]

23 hours ago, tradegirl said:

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

23 hours ago, tradegirl said:

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

Give a 6 month basic warranty free . engine , gear box and axle diff eg "drive train " 

Then up sell same 6 months but cover more, eg standard warranty " price eg £199 

 

[MattR 177]

I would encourage the customer to come back to you and the garage you know. Too often the garage that gets the car in will assume you are a cash cow to be milked to the full and will find additional work (normally stuff like discs and pads) which the customer will ask you to cover as well, because as much as they like you when they buy it, they (naturally) become a bit suspicious when something goes wrong.

 An oil leak isnt always a simple fix, if you are in control, you will make sure a small repair doesnt escalate.

[It's me 615]

1 hour ago, David Horgan said:

Give a 6 month basic warranty free . engine , gear box and axle diff eg "drive train " 

Then up sell same 6 months but cover more, eg standard warranty " price eg £199 

 

hi

its a bad idea giving a basic worded warranty that covers engine , gear box and axle diff eg "drive train " because unless you stipulate in detail what is and isnt covered then you are leaving yourself open to problems from either trading standards the customer or a small claims court

either give a warranty or dont,trying to upsell from your kitchen to me sounds frankly absurd

take their money and cover what the cra says you should,remember you are working from home thus obviously saving on lots of potential bills so you will be undercutting the pitch man anyway

[David Horgan 564]

1 hour ago, boring dave said:

hi

its a bad idea giving a basic worded warranty that covers engine , gear box and axle diff eg "drive train " because unless you stipulate in detail what is and isnt covered then you are leaving yourself open to problems from either trading standards the customer or a small claims court

either give a warranty or dont,trying to upsell from your kitchen to me sounds frankly absurd

take their money and cover what the cra says you should,remember you are working from home thus obviously saving on lots of potential bills so you will be undercutting the pitch man anyway

1 hour ago, boring dave said:

hi

its a bad idea giving a basic worded warranty that covers engine , gear box and axle diff eg "drive train " because unless you stipulate in detail what is and isnt covered then you are leaving yourself open to problems from either trading standards the customer or a small claims court

either give a warranty or dont,trying to upsell from your kitchen to me sounds frankly absurd

take their money and cover what the cra says you should,remember you are working from home thus obviously saving on lots of potential bills so you will be undercutting the pitch man anyway

I don't trade from home or the kitchen thankyou , never have done 

 

 

 

[EPV 631]

I’ve decided to stop providing warranties. I’ve often thought of them as smoke and mirrors and the reality is they give punters an unrealistic view of what they will be getting post sale. Looking at my sales this year 95% of my punters I never hear from again. 

So with the combined help of Arfur Dealey and a very helpful conversation with Nona of Lawgistics i’ve decided to stop offering them. 

Will it cost me sales? Maybe. It may cost me the odd sale but I believe it will also save me long term grief. Perhaps when I get up to retailing £20k+ units I will look at chucking a third party one on there if the punters are all screaming for one but for now, I will tell people I prep well, beyond that then you are responsible for wiping your own arse. 

[It's me 615]

3 hours ago, David Horgan said:

I don't trade from home or the kitchen thankyou , never have done 

 

 

 

Hi

I have no idea where how or what you trade in I was giving General advise to your post because I was warned of warranties with weedy words taking away consumer rights when the xr3i came out

Just saying.........

[Arfur Dealy 823]

28 minutes ago, EPV said:

I’ve decided to stop providing warranties. I’ve often thought of them as smoke and mirrors and the reality is they give punters an unrealistic view of what they will be getting post sale. Looking at my sales this year 95% of my punters I never hear from again. 

So with the combined help of Arfur Dealey and a very helpful conversation with Nona of Lawgistics i’ve decided to stop offering them. 

Will it cost me sales? Maybe. It may cost me the odd sale but I believe it will also save me long term grief. Perhaps when I get up to retailing £20k+ units I will look at chucking a third party one on there if the punters are all screaming for one but for now, I will tell people I prep well, beyond that then you are responsible for wiping your own arse. 

If it works for you like it does for me James then great, we are all different. I actually thing the CRA benefits us more that SOGA..... 

[EPV 631]

9 minutes ago, Arfur Dealy said:

If it works for you like it does for me James then great, we are all different. I actually thing the CRA benefits us more that SOGA..... 

We are different mate and each to their own but it just makes sense to me, to not offer warranties because ultimately they are insuring the punter, that's it. And on 8 year old cars with 80,000 miles on, why am I insuring them on future repair bills? And if the car is 6 years old with 30,000 miles on, how often will the bloody warranty be needed anyway? 

The CRA is massively beneficial to those dealers who prep well and do the job right. It's taken me a while to understand why that statement is true but I do now. If you do the job right you will rarely have to pay out on anything and the times you do, will be because you choose to, not because the law says you have to.

I will at a push, if it's a genuine dealbreaker, on a car I can't give away, do some sort of in house warranty for someone. But the cars I stock generally go in an average of 30 days so the demand is there and the occasional lost sale will not hurt me, where as the grief that comes with punters who think their 8 year old car is insured against all mechanical fault for 6 months will hurt me a lot more.

[lastyboy 23]

Each to their own on this one. I put in £100 a car into a seperate fund and pay claims out of it.

Few years down the line ive got £45,000 pounds in that account. Nice little pension.

[EPV 631]

11 minutes ago, lastyboy said:

Each to their own on this one. I put in £100 a car into a seperate fund and pay claims out of it.

Few years down the line ive got £45,000 pounds in that account. Nice little pension.

Better still, don’t pay any claims out of it and have more 

[lastyboy 23]

14 minutes ago, EPV said:

Better still, don’t pay any claims out of it and have more 

True but id rather that than give it to a warranty company.

[SC Derby 259]

We pay for our own but can’t see the point in keeping a separate pot as it were

surely that money is better invested in stock than just sitting there??

[Arfur Dealy 823]

6 hours ago, lastyboy said:

True but id rather that than give it to a warranty company.

Exactly 

6 hours ago, SC Derby said:

We pay for our own but can’t see the point in keeping a separate pot as it were

surely that money is better invested in stock than just sitting there??

Exactly 

[Rory RSC 596]

12 hours ago, SC Derby said:

We pay for our own but can’t see the point in keeping a separate pot as it were

surely that money is better invested in stock than just sitting there??

Same, every now and again get a big one and suck it up move on.

 

[andymc1973 199]

58 minutes ago, Rory RSC said:

Same, every now and again get a big one and suck it up move on.

 

enough about your private life Rory, he meant the warranty claims

[Rory RSC 596]

6 minutes ago, andymc1973 said:

enough about your private life Rory, he meant the warranty claims

Might have known 

I can't edit 

[Mark101 536]

£45k in warranty reserves - madness.

I would cream off anything over £5k which would cover all but the very very worst claims.

[lastyboy 23]

On 14/09/2018 at 9:02 AM, Mark101 said:

£45k in warranty reserves - madness.

I would cream off anything over £5k which would cover all but the very very worst claims.

Why? I have plenty in the bank to buy stock. Just like looking at it and counting it.