Warranty companies - a rant

[Rosemotors 31]

Aaargh!!!!

 

I've only been trading for 4 months, so yet to get as cynical as some I could mention.

 

But, from day one, my cars have gone out right. Whatever is due to be done gets done. No shortcuts.

Part of that is so I can build a really good reputation and also to give warranty companies zero wriggle room in terms of vehicle prep.

I put 12 months warranty on everything under 10 years/100k miles and provide the highest level of cover for my customers that the system allows.

 

So, when a customer of mine turns up with a rattle coming from the engine, I don't panic, trusting that the claims department will be fair with my customer (he'd had the car less than a week. It had just been serviced and the cam belt done. Over £600 pre-sales).

My record so far is just one claim in 4 months.

The fault came back as the a/c pump pulley and they rejected it, citing wear and tear.

 

I think I'll just put the cheap option on from now on.

[It's me 615]

to be fair to warranty company bearings dont go in a week and maybe when cambelt changed just prior to sale ,fitter overtightened serpentine to ac pump?  why not self warrant and chuck all the money in a pot for such eventualities if your cars go out right as this is what i do with strict rules no third parties can tinker without my say so

[Wood235 36]

We have been trading 15 years, gave up using warranty companies after approx 2 years for same reason as you, even after they had taken thousands from us, refused to help with a head gasket problem. If the warranty company refuses, we can still be liable so have to pay & get it sorted anyway! we do it all off our own back now, why not have their profit aswell? That way if there's a problem, there's plenty of money in the kitty to pay for it! Some people have a separate account & put a set amount away after every sale.

[v5cars 2]

Wouldn't covering warrenty issues yourself also create a nice aftersales relationship with your customers, further heightening your reputation.

[BrokerMan 1]

Yes, you can save a lot of money giving your own warranty vs paying to include a 3rd party one.

 

No up-sale though (i.e. upgrade a 3 month to 12 month warranty).

 

Depends on whether you do sales, or sales ans servicing. Many dealers don't do much servicing work and so don't need the hassle of a car coming back and so easier to include a 3rd party product.

 

But if you have your own servicing facilities and mechanic on-hand then makes sense to self-warranty.

[LawJaw 50]

Yes, you can save a lot of money giving your own warranty vs paying to include a 3rd party one.

 

No up-sale though (i.e. upgrade a 3 month to 12 month warranty).

 

Depends on whether you do sales, or sales ans servicing. Many dealers don't do much servicing work and so don't need the hassle of a car coming back and so easier to include a 3rd party product.

 

But if you have your own servicing facilities and mechanic on-hand then makes sense to self-warranty.

Hi BrokerMan,

 

I agree that running your own warranty vs paying to include a 3rd party one will definitely save a dealer money.

 

However I DO NOT agree this will exclude you from selling up. I know of many dealers selling their 'own' warranties... 6 month/1 year or even 2!

 

It is all about the paperwork... the T + C's. It is a simple contract between 2 parties - If the customer promises to do X,Y and Z you will do A,B or C.

 

Call it a warranty, service contract or guarantee... call it what you want BUT if there is no 'transfer of risk' (your own warranty) it is not an insurance and you will not have to get involved with the FCA.

 

Obviously the VAT man will want his cut BUT if your paying more VAT you will be taking more money

[James Baggott 227]

Sounds interesting. Anyone out there do this?