Self funded warranty good or bad?

[Beautiful South Martin 24]

Like probably most people in lockdown at the minute, I'm looking at changing a few things when we eventually get back to trading again. I know this subject has been discussed a few times on here but I'm seriously now thinking about using an in house warranty. At the moment we put a 3 month underwritten warranty and try and sell up to a 12 month, not very successfully I may add. As we all know half the time we end having to pay for repairs ourself as they are not covered when the claim goes in. I've just totted up how much I've paid out to said warranty company in the last 12 months and I know who's in profit!! So who are the main players in this field, the only one I been offered is Black Star warranties but it was last year when the rep called in and I can't remember the ins and out. Happy to put say a £100 a unit into a pot and see how it goes. Any pointers would be appreciated.

[trade vet 703]

We started doing our own in 95.It depends on how many you do for it to be worthwhile.Having your own workshop also helps.More info required.

[Beautiful South Martin 24]

Hi Trade vet

No workshops just sub contract everything. 120-150 per annum but hoping to increase that to 200+ as just took on additional storeage facilities.

Thanks

 

 

[trade vet 703]

39 minutes ago, Beautiful South Martin said:

Hi Trade vet

No workshops just sub contract everything. 120-150 per annum but hoping to increase that to 200+ as just took on additional storeage facilities.

Thanks

 

 

Doing 120 and putting in £100 per car you should be slightly better off over the year but you won’t build up a pot of money.Just do it yourself and get your own books printed and call it a ‘ breakdown agreement’.Unless things have changed you can’t call it a warranty unless it is underwritten by an insurance company.No need to use a warranty administration company,you can manage any claims yourself and customers do appreciate that.

[Anglo9 26]

100% happy with A1 Approved (they manage your own fund)  over the years , if you prep your cars properly you should build a nice pot .

[Gone & Long Forgotten 2]

14 hours ago, trade vet said:

Doing 120 and putting in £100 per car you should be slightly better off over the year but you won’t build up a pot of money.Just do it yourself and get your own books printed and call it a ‘ breakdown agreement’.Unless things have changed you can’t call it a warranty unless it is underwritten by an insurance company.No need to use a warranty administration company,you can manage any claims yourself and customers do appreciate that.

Good advice from Trade Vet... We also run a 'warranty' fund at £100. x 250 units (circa) and administer ourselves, last year we spent £13700 and shared the surplus as dividends. Although, as another contributor commented, we are meticulous on mechanical prep. Prevention is better than cure every time.  

[Beautiful South Martin 24]

What about policy books do you have those printed professionally or is it just designed by yourself and given to your customer. I've just looked at Crystal clear warranties on line and its up £22 a policy for 3 months roadside assistance, books etc and then £350 + VAT up front for POS 

[trade vet 703]

10 minutes ago, Beautiful South Martin said:

What about policy books do you have those printed professionally or is it just designed by yourself and given to your customer. I've just looked at Crystal clear warranties on line and its up £22 a policy for 3 months roadside assistance, books etc and then £350 + VAT up front for POS 

Get a handfull of warranty books from other companies to give you a few ideas.Then adjust to suit yourself.Then get some books printed ( not to many as you will be making changes) ,it has to be easy to read and in clear understandable language.Sorry but I cannot send you one of our booklets to copy but if you get in touch,I will give you some tips.

[A & S 20]

We have been doing self funded warranties for about 15 years. We have alongside done the odd one through a warranty company. The self funded warranties - we use Lawdata books, scheme 3, 3 months cover and £200 claims limit per claim, we put £50 away in a reserve account. We usually have a balance built up in there which usually pays some of our vat bill. Since last year (march 2019) we have moved to larger premises, from 25 cars to 70 cars, all the descent stock we advertise with 6 months warranty and 12 months mot, working quite well. These warranties are through a warranty company. Make sure the cars go out on good order you wont have a problem doing self funded warranties. 

[david gott 58]

On 5/13/2020 at 4:33 PM, Beautiful South Martin said:

Like probably most people in lockdown at the minute, I'm looking at changing a few things when we eventually get back to trading again. I know this subject has been discussed a few times on here but I'm seriously now thinking about using an in house warranty. At the moment we put a 3 month underwritten warranty and try and sell up to a 12 month, not very successfully I may add. As we all know half the time we end having to pay for repairs ourself as they are not covered when the claim goes in. I've just totted up how much I've paid out to said warranty company in the last 12 months and I know who's in profit!! So who are the main players in this field, the only one I been offered is Black Star warranties but it was last year when the rep called in and I can't remember the ins and out. Happy to put say a £100 a unit into a pot and see how it goes. Any pointers would be appreciated.

I always self warrant, might be worth having a listen to this there’s plenty of chat about warranties on this podcast we done the other day with nick from small cars direct 

https://podcasts.apple.com/gb/podcast/car-dealer-pro-podcast/id1506252764?i=1000474472263

 

[Bmx Bandits 52]

10 hours ago, david gott said:

I always self warrant, might be worth having a listen to this there’s plenty of chat about warranties on this podcast we done the other day with nick from small cars direct 

https://podcasts.apple.com/gb/podcast/car-dealer-pro-podcast/id1506252764?i=1000474472263

 

Thanks, really enjoyed the podcasts, Nick is a good lad but I was really surprised when he said he didn’t offer a warranty.

We’ve only ever used an underwritten warranty and we have never been great at up-selling it. It’s when you look at what I’ve spent over the years, it’s really surprised me.

I’ve never used Lawgistics, are they a good company to get involved with? do you use their managed warranty service or administer yourself? 

 

[david gott 58]

I administer them myself, I normally buy 100 booklets a time and they are great if customers just want our compIimentary warranty (normally 1 - 3 months ) I can’t remember exactly how much but I think it’s around £300 for 100 booklets so well worth the money.

I up sell the warrantywise 12 month warranty,  when a customer leaves a deposit I’ll give them a leaflet to ponder on it, I offer them it at cost price, if it costs the customer £120 for 12 months they know they are getting a really good deal, if they were at a main dealers it would be double.

[d3matt 0]

Try https://www.warrantyadmin.co.uk//
Warranty docs for each vehicle, plus roadside cover - £10 each.

[dickdv 0]

If anyone is looking for Lawgistics warranty booklets I have a stack of unused booklets for sale.

https://www.ebay.co.uk/itm/233916486145

 

[LawJaw 50]

7 hours ago, dickdv said:

If anyone is looking for Lawgistics warranty booklets I have a stack of unused booklets for sale.

https://www.ebay.co.uk/itm/233916486145

 

You have absolutely made my day dickdv. I personally designed these booklets ten years ago (obviously there has been some updates along the way) and never imagined a day when I would see them sold as a second hand item on eBay – fair play to you.

I am sorry they didn’t work out for you, we know hundreds of dealers who have saved thousands of pounds using them.

If you have trouble selling them, please get in touch as we would be happy to consider taking them in as a PX against any of our stationery or legal services.

[Dave2302 387]

plus p+p