Warranty or no warranty, that is the question!

[JobDone 5]

So im the new kid in town, finding my feet and learning what works and what doesnt, whats legal and what isnt. When it comes to customer warranties, whats the best option?

I know i dont have to supply a warranty, but what is the benefit if i do? Is it just peace of mind for the customer? Will a warranty realistically pay out for things which should be covered under the CRA2015 as if its fair wear and tear it wont be covered and ill have them screaming down the phone at me? Or does it set a false saftey bubble for the customer? I just dont want to waste money if i dont need to supplying 3 or 6 months warranty only to have to pay out for claims because they arent covered.

I know another option is the self administered route as offered by Lawgistics. As a new trader would this be the right way to go from the start? Set up an initial warranty pot of £1000 and add £100 for each car sold? Realistically it sounds like a good option but it would be nice to get some feedback from the guys who have gone this route. Doing this does it mean i can potentially deal with a claim that would have been covered by the CRA15 as a warranty claim? Meaning i still have my 1 oppertunity to rectify any future issues?

I could initially try the payed warranty route and see how it goes when a claim arises. If self administered is going to save me money in the long run then maybe thats the way to start? I could ofcourse just not offer anything but what are the pitfalls of this?

the cars im dealing in are £4-6k under 10 years, if that makes a difference.

Feel free to tell me im an idiot if ive missed something obvious!!!

Edited May 29, 2020 by JobDone

[justina3 518]

A very broad question to answer as a lot of dealers do things totally different, many factors differ from how far away do you sell your cars local or national ? do you have a great support network like mechanic spark general all rounder ect.

Return to base cover like we offer is great if your selling locally if someone has a abs light come on for example we can have it fixed and back them normally within 24 hours often the same day, then fixing faults becomes almost a secondary advert for your business when there mate down the road is still fighting with the big supermarket to even look at there car fault.

For us everything is in house we control the fix we control the parts spend and nip any issues in the bud straight away before a snowball turns into an avalanche as these things often end up doing. 

You dont have to have your own technician in house you can do as we did at first and have a local mobile guy come and look at faults. 

Faults are a nightmare for sure but we take the view now is the time to shine fix it clean it get it back to customer job done.

 

[David Horgan 564]

Customers expect some form of warranty for sure , its a question they will ask you every time . 

Depends on the approach to warranty and how its explained , NO One covers wear and tear on a used car 

So you need to explain that warranty covers a LIST of parts that fail .

But all this really does depend on how good you are at mechanical prep before you sell it . We all have to admit that when someone sells a used car and we buy it to resell there is going to be a problem of some sorts to fix before we sell it . 

So our rule is here , FIX it before its sold , we don't get warranty claims then . Life at that point is easier . 

Self administered is the way to go from a cost point of view and it helps you remain in control , but you have to know how to handle the situation when or if it arises . 

A third party warranty will say no to just about everything and then the call comes back to you anyway , 

Hard choices though because unless you have a workshop its expensive all way round . 

Golden 3 secrets , PREP PREP PREP  before sale 

[New year revolutions...... 197]

you say you are going to do it part time and from home so

you have to put yourself in the seat of the customer

why would I want to go to someone's home at this time to buy a car when I might just catch covid 19 from the seller his family the dog or even his next door neighbour coughing over the fence

so a warranty is a bit of a USPS

therefore its up to you and what the customers perspective of you is

would you go to you and lash the cash

[trade vet 704]

If you are just starting up ‘ doorstepping ‘ ,prep your stock to death and offer a 7 day money back guarantee.Without a doubt,that will help.

[JobDone 5]

23 hours ago, justina3 said:

You dont have to have your own technician in house you can do as we did at first and have a local mobile guy come and look at faults. 

Faults are a nightmare for sure but we take the view now is the time to shine fix it clean it get it back to customer job done.

 

I hadn’t thought about using a mobile mechanic but this is a very good option! I will definitely look into this.

23 hours ago, David Horgan said:

Customers expect some form of warranty for sure , its a question they will ask you every time . 

Depends on the approach to warranty and how its explained , NO One covers wear and tear on a used car 

So you need to explain that warranty covers a LIST of parts that fail .

But all this really does depend on how good you are at mechanical prep before you sell it . We all have to admit that when someone sells a used car and we buy it to resell there is going to be a problem of some sorts to fix before we sell it . 

So our rule is here , FIX it before its sold , we don't get warranty claims then . Life at that point is easier . 

Self administered is the way to go from a cost point of view and it helps you remain in control , but you have to know how to handle the situation when or if it arises . 

A third party warranty will say no to just about everything and then the call comes back to you anyway , 

Hard choices though because unless you have a workshop its expensive all way round . 

Golden 3 secrets , PREP PREP PREP  before sale 

Thanks David. This was my way of thinking. It’s all in the prep! I’ve been around cars my whole life so have a good understanding of Basic fault finding when it comes to issues. All my cars will be extensively test driven to ensure that any faultS present whilst in mY custody are dealt with. I’ve actually got PREP PREP PREP! Written on my whiteboard!

 

21 hours ago, New year revolutions...... said:

you say you are going to do it part time and from home so

you have to put yourself in the seat of the customer

why would I want to go to someone's home at this time to buy a car when I might just catch covid 19 from the seller his family the dog or even his next door neighbour coughing over the fence

so a warranty is a bit of a USPS

therefore its up to you and what the customers perspective of you is

would you go to you and lash the cash

Hi NYR. As far as I’m concerned I can set up the same standard of safety at my home as any other place of business. Nobody will be invited in to my home. All activities will take place externally. Customers will be asked to wear gloves and masks during all interactions. Vehicles will be wiped down with an antibacterial solution before and after every viewing. All appointments are by prior arrangement. I understand what your saying but I will do everything I can to minimalise the risk for all, just like anyone with a pitch. 

I know being a doorstepper is frowned on by most but sadly I don’t have the capital to rent a pitch or unit and buy stock, so for me this the only option at this point. Once I have increased my capital sufficiently I will move over to pitch or unit. I will be paying tax and VAT when it becomes applicable. I’m not cutting corners. I doing everything in my power to protect my customers and myself.
 

21 hours ago, trade vet said:

If you are just starting up ‘ doorstepping ‘ ,prep your stock to death and offer a 7 day money back guarantee.Without a doubt,that will help.

Thanks Trade Vet. I want to offer a service which will result in return custom in the future so will definitely be prepping to the best of my ability. All cars Extensively test driven and any fault, no matter how small dealt with. Mot’d and PDI’d at point of sale. I think your right about the 7 day returns. I will 100% stand by my product so this should never be an issue.

 

Thanks to everyone for your replies!!!

[BHM 994]

21 hours ago, trade vet said:

and offer a 7 day money back guarantee

Sorry, but that’s one of the worst suggestions I can think of.

[trade vet 704]

2 hours ago, BHM said:

Sorry, but that’s one of the worst suggestions I can think of.

What if I said we had been doing that for nearly 20 years !

[BHM 994]

8 hours ago, trade vet said:

What if I said we had been doing that for nearly 20 years !

I’d say I was staggered. Part of your business model is advertising that you take back cars, no questions asked, within the first 7 days? 

I don’t recall any car dealership, new or old, offering such generosity.

[New year revolutions...... 197]

12 minutes ago, BHM said:

I’d say I was staggered. Part of your business model is advertising that you take back cars, no questions asked, within the first 7 days? 

I don’t recall any car dealership, new or old, offering such generosity.

I've done it since cra came out

not used it but it saves hassle 29 days down the line, I've always thought

I  electronically send log books off after 7 full days and tell customers this too so they know where they stand 

[Bmx Bandits 52]

55 minutes ago, New year revolutions...... said:

I've done it since cra came out

not used it but it saves hassle 29 days down the line, I've always thought

I  electronically send log books off after 7 full days and tell customers this too so they know where they stand 

That’s a really good idea. What would you do about the road tax? I suppose you could/would have to pay them for it and try and sell it to the next owner? 

[Casper 272]

6 minutes ago, Bmx Bandits said:

That’s a really good idea. What would you do about the road tax? I suppose you could/would have to pay them for it and try and sell it to the next owner? 

Tax it on the new keeper supplement i guess many would back in the  post off log book days . And post all the v5s off together in a big envelope a local main dealer that we used to buy px vehicles from did it regular 

[David Horgan 564]

On 5/31/2020 at 8:42 AM, JobDone said:

I think your right about the 7 day returns. I will 100% stand by my product so this should never be an issue.

Beware of the 7 day return , not all customers are sweet and lightness , true and honest .

I have seen with my eyes this service abused so many times in the past .

Yes it does install confidence and that's clear why , but that needs to be an honest customer . 

I've seen a customers take a car that's offered with 7 day return  because they had the same model  at home with problems , swap parts within seven days and bring it back with obvious issues for a refund . The trader didn't find out for a while and it cost into a £1,000 + to put right again , He never proved it either and wasn't shy of trying .

Take a car for 6 days to do a long trip and return it with issues , heard of that scam .

There will be some more instances I'm sure , not something i would offer in this sweet honest world . 

[trade vet 704]

21 minutes ago, David Horgan said:

Beware of the 7 day return , not all customers are sweet and lightness , true and honest .

I have seen with my eyes this service abused so many times in the past .

Yes it does install confidence and that's clear why , but that needs to be an honest customer . 

I've seen a customers take a car that's offered with 7 day return  because they had the same model  at home with problems , swap parts within seven days and bring it back with obvious issues for a refund . The trader didn't find out for a while and it cost into a £1,000 + to put right again , He never proved it either and wasn't shy of trying .

Take a car for 6 days to do a long trip and return it with issues , heard of that scam .

There will be some more instances I'm sure , not something i would offer in this sweet honest world . 

Like doing our own warranty agreements,there are T@C’s involved to help prevent any abuse.
I recall one dealer many years ago who bought stuff needing work.He would buy a Cortina with damaged synchros,then hire one for the weekend and swap the box.

[New year revolutions...... 197]

I must stress I dont advertise 7 day money back, I'm not mad

 

yet

[BHM 994]

26 minutes ago, New year revolutions...... said:

I must stress I dont advertise 7 day money back, I'm not mad

 

yet

Tbh I still don’t know anyone actively trading who advertises as such. Anyone currently thinking of adding such a ‘courtesy’ to their customers? I won’t hold my breath.

[have a word with the wife 299]

1 hour ago, New year revolutions...... said:

I must stress I dont advertise 7 day money back, I'm not mad

 

yet

yet 

what day is it please ? 

 

i

[Paul C 75]

1 hour ago, BHM said:

Tbh I still don’t know anyone actively trading who advertises as such. Anyone currently thinking of adding such a ‘courtesy’ to their customers? I won’t hold my breath.

Das Welt Auto offers 30 day/1000 mile exchange (but not money back): https://www.volkswagen.co.uk/used-cars/approved-used-benefits . Audi is basically the same.

Edited June 1, 2020 by Paul C

[Billy Joe Public 2]

1 hour ago, BHM said:

Tbh I still don’t know anyone actively trading who advertises as such.

Lucas does, with fair use restrictions:

7 Days to Change Your Mind

For face-to-face purchase, we give you 7 days to change your mind. If you don’t like it, simply bring it back within 7 days for a refund. It’s so easy.

It’s important to know when you’re committing to buy from us, and the fair-use restrictions for our refund policy, which are below.

• The option to change your mind and return the car ends after 7 days.
• The vehicle transportation is the responsibility of the Buyer.
• We will require the vehicle to be returned to our location in the same condition as when it was purchased. If the car requires cleaning or repair, then reasonable charges will apply.
• If you decide to return the car, your refund will be adjusted by 45 pence per mile to reflect usage.
• All return vehicles are subject to an Additional Administration Fee of £695.
• You can put the refund towards purchasing another from us immediately of us getting the car back.
• You should get a refund within 14 days of us getting the car back if you decide to get money back.

[trade vet 704]

2 hours ago, BHM said:

Tbh I still don’t know anyone actively trading who advertises as such. Anyone currently thinking of adding such a ‘courtesy’ to their customers? I won’t hold my breath.

That’s OK guys,I am used to being accused of ‘ not knowing what I was doing ‘.Back in 93 started The Ex Police Department retailing ex Police stuff from a unit on a trading estate.( How mad was that ).95 started doing our own warranties ( you don’t want to do that they said ).2001 discounted stuff by £500 to nearly cost for finance customers and discouraged cash sales.( how stupid was that ) 2002 introduced and advertised Free 7 day Money Back Guarantees ( must have been mad by then ) ,we also introduced Customer Care Packs at £300 about then but they were discontinued after a few years. So it all adds up,I must be mad !

[BHM 994]

1 hour ago, Billy Joe Public said:

• If you decide to return the car, your refund will be adjusted by 45 pence per mile to reflect usage.
• All return vehicles are subject to an Additional Administration Fee of £695.
• You can put the refund towards purchasing another from us immediately of us getting the car back.
• You should get a refund within 14 days of us getting the car back if you decide to get money back.

£695 & “you should get a refund in 14 days” ain’t what I’d call a no quibble, 7 day money back deal. Quite the opposite - even I’d almost be comfortable offering those terms!

[David Horgan 564]

37 minutes ago, BHM said:

£695 & “you should get a refund in 14 days” ain’t what I’d call a no quibble, 7 day money back deal. Quite the opposite - even I’d almost be comfortable offering those terms!

£695 and .45 p a mile plus valet costs i could be changing my mind haha , thankyou madam for your custom  " next " 

[Paul C 75]

Would be interesting if that resultant figure is lower than its trade in price!

[New year revolutions...... 197]

5 hours ago, Billy Joe Public said:

Lucas does, with fair use restrictions:

7 Days to Change Your mind

• If you decide to return the car, your refund will be adjusted by 45 pence per mile to reflect usage.
• All return vehicles are subject to an Additional Administration Fee of £695.
•  

whilst all this looks good unless it also states this is in addition to your rights under cra I would suggest it's a restrictive practise and not an Avenue I would like to explore 

[BHM 994]

12 hours ago, New year revolutions...... said:

whilst all this looks good unless it also states this is in addition to your rights under cra I would suggest it's a restrictive practise and not an Avenue I would like to explore 

Never thought of that but I'm sure you're correct. I guess many of these 'no quibble money back' promises that our industry is allegedly awash with  are just the usual B/S. I'll stick to being honest, upfront & straightforward with my customers.