Tag Archives: self-funded warranty

Self-Funded Warranty: It’s Not For Everyone

That’s what I often advise prospective clients when discussing self-funded warranties, and it’s surprising how many motor dealers still aren’t aware of the huge benefits of this tried and tested method of delivering a warranty solution. But like I said in the title, it really isn’t for everyone.

So what do I mean by that? Helping motor dealers “self-fund” their own warranty is something we have lived and breathed for over 33 years. So for those thinking “is it right for my business?”, the answer to that is simple and comes in two parts.

Firstly, how much time do you spend on vehicle preparation? If the answer is not a lot, then self-funding your own warranty is not for you. Self-funding your own warranty means covering the risk yourself should something go faulty with the customers car. For dealers who have the time and resources to prepare a vehicle well, it means you reap all the rewards.

The second part to the question “is self-funded warranty right for my business?”, comes in the form of a simple test.

Look at your last full year accounts, and see how much you spent on buying-in warranties. Then, over the same period, total up the income you received back from the warranty company in authorised claim repairs. If you don’t do your own repairs, ask your warranty company for the data.

Now, deduct the total claims paid out by your warranty provider, from your spend over the same period and you are left with a figure that may resemble a telephone number.

 

Let’s look at an example!

A good quality dealer, let’s call them Excellent Autos, selling 30 cars a month with 12 month warranties at an average cost of £130 per warranty. They would spend a total of £46,800 a year buying-in warranties (30 x 12 x £130).

Now, let’s look at one of our established dealers who has been using our self-funded warranty for over 18 years. They use an “all components covered” level of cover with a £3,000 individual claim limit, and an overall claim limit of the price paid for the vehicle.

They are currently running at £77.93 in claims per warranty, which includes internal and 3rd party claims. Using these figures for Excellent Autos, they would have claims costs totalling £28,054.80 (30 x 12 x £77.93).

In other words:

So what do these numbers tell us?

  • In one year, our example dealer “Excellent Autos” paid £46,800 to the warranty company.
  • They provided £18,745.20 toward “other dealers” warranty costs.
  • With a self-funded warranty, that £18,745.20 would be returned back to Excellent Autos as expired profit. This is just one of the huge benefits that comes with a self-funded warranty.

So do the sum for your business – are you a net contributor, or receiver? Then ask yourself, are you comfortable with the results?

I hope this post gave you some food for thought over the festive period. Perhaps the new year is the ideal time to look at your warranty costs. Next month we will lift the lid off the smoke & mirrors that is often referred to as “Burn Rate” .

Thanks for reading and may I close by wishing you all a very Merry Christmas and a positively prosperous New Year.

Alan Davison
Managing Director
Crystal Clear Warranty

Crystal Clear Warranty Video 2: “Child’s Play”

Today we launch the second Crystal Clear Warranty video in our series! We also pledge to turn your views into a donation to BEN which last time helped us raise £1,000 for those in the motor trade falling on hard times!

Greetings everyone! Firstly before I begin, everyone at Warranty Administration Services Ltd would like to say THANK YOU! By watching our first video, you helped raise £1,000 for BEN to support those falling on hard times in the motor trade. Thank you so much!

We’re now back with our second Crystal Clear Warranty video! After the first video received critical acclaim and rumors of a Hollywood spin-off series already starting to spread (in our dreams), we are here to give you the link to our next episode!

BEN Logo

Remember that this is more than just our way of presenting our Crystal Clear Warranty. We are  proud to back our friends at BEN, and we pledge to turn your video views into a donation to help them support many of our motor trade colleagues during difficult times. So why not grab yourself a drink and spend 2 minutes with our new on-screen characters! Click the link below!

Crystal Clear Warranty Video Series

Crystal Clear Warranty Video Series

Video link! warrantyadmin.co.uk/ben

If our contribution helps make a difference in someones life supported by BEN, then it’s a job well done!

Video Series Launch – Smiles For BEN

Today we launch our first video in a new series aimed at the motor trade! We have also pledged to turn your views into a donation to BEN, to help those in the trade falling on hard times. So grab a hot drink, and take 2 minutes to giggle at our first step into the silver screen!

Greetings everyone! You may have already heard around the web that we release our very first video today! The first in a brand new series aimed at making light of the motor trade through the adventures of our characters – the eccentric car dealership manager, and his plucky sidekick Tim! This first video is entitled “Frustration”, so click the link below to watch how Tim steps-up and saves the day!

Crystal Clear Warranty Video

Watch the video here! warrantyadmin.co.uk/ben

 

BEN Logo

We have also pledged to turn your views into a donation to BEN, to help those in the motor trade falling under hard times. Watch, laugh, smile, and most importantly share it with your friends.

Crystal Clear Warranty Video

Every view will help to raise money for BEN; the not-for-profit team who support many of our Motor Trade colleagues during difficult times.

Video link! warrantyadmin.co.uk/ben

If our small contribution helps put a smile on the face of someone being supported by BEN, then it’s a job well done!

DealerConfNI – The New Trade Show For Used Car Dealers

DealerConfNI – A new trade show offering used car, van, and motorcycle dealers in Northern Ireland the opportunity to network and get expert knowledge from leading motor trade suppliers! Come visit the Hilton Templepatrick Hotel on April 5th 2016 and be a part of this exciting event!

Something new and exciting is coming to Belfast on April 5th, as the very first DealerConfNI takes place at the Hilton Templepatrick Hotel!

Hosted by Used Cars NI and featuring Warranty Administration Services Ltd,  DealerConfNI is a one-day event that brings together a range of industry leading guest speakers to give expert interactive presentations and seminars about the motor trade.

DealerConfNI Logo

Hilton Templepatrick Hotel
Hilton Templepatrick Hotel, Belfast

It also offers used car, van, and motorcycle dealers in Northern Ireland the perfect opportunity to get involved and ask questions, and settle concerns about best practices! Hopefully everyone will drive away having discovered something new, and enjoyed a fun day with like-minded personalities in the motor trade!

DealerConfNI – What’s on?

  • Our very own Steve Robson will be hosting an interactive discussion on all the benefits of a dealer self-funded warranty programme.
  • A foyer packed with exhibitors!
  • Refreshments and light lunch kindly supplied to delegates by Used Cars NI.
  • Damien Doherty from Trading Standards will talk on the Sales of Goods Act and Consumer Rights Act, and your obligations to your customers.
  • Gregory Hunt of Ombudsman Services will be discussing the new Advanced Dispute Resolution initiatives, and what it means to you.
  • CAP/HPI will be giving a presentation on “write-offs, repos, and cons”, explaining what to look our for so that you don’t get stuck with the wrong car – and what to do if you do!
  • Independent expert Graham Filmer will provide a plain English overview of the FCA journey facing dealers.
  • iVendi and event sponsors Moto Novo Finance to discuss the future of searching for cars online, and how finance will change the customer journey.

We will be at DealerConfNI!

Yes, Warranty Administration Services Ltd will be there at DealerConfNI! As well as giving a feature presentation on the benefits of a self-funded warranty over a traditional warranty, we’ll also have a stand where you can find out more about our Crystal Clear Warranty.

Not only do we have free goody bags to give away, but also a few fun activities to try your hand at, and also a fabulous competition where you can win an iPad Mini!

Crystal Clear Warranty Goody Bag
Crystal Clear Warranty Goody Bag!

How do i get involved in the #DealerConfNI conversation?

Using Twitter, tweet away mentioning the official #DealerConfNI hashtag! You can also search on twitter for the same hashtag to see what everyone is talking about!

How do I attend DealerConfNI?

Contact Used Cars NI who are hosting the event on 028 9032 4065, or email info@usedcarsni.com

What is the venue contact details?

Hilton Belfast Templepatrick 
Paradise Walk, Castle Upton Estate,
Templepatrick
BT39 0DD
UK
Telephone: 028 94435500

We really hope to see you there!

New Banners, Posters, & Leaflets For Our Crystal Clear Warranty

So a little bit of “goings on” within Warranty Administration Services Ltd. Announcing our new shiny pull-up banners available to our dealers supplying the self-funded Crystal Clear Warranty! We also have banners for our nationwide rescue recovery service GenAssist!

They’ve started popping up in showrooms around the UK. Our new 2m tall glossy pull-up banners are proving very popular in helping promote the Crystal Clear Warranty, and are available to all our dealers supplying the warranty to their customers. They even come supported by large A1 posters, tri-fold leaflets, and even leaflet holders to display them in!

The banners, leaflets, and posters promote the benefits of the Crystal Clear Warranty, highlighting:

  • Comprehensive cover levels
  • Diagnostics covered on valid claims
  • Quick & simple claims process
  • Fast claims pay-out
  • No excess to pay

Crystal Clear Warranty Pull Up Banners, by Warranty Administration Services Ltd

Leaflets and A1 posters are supplied FREE to our clients who use the self-funded Crystal Clear Warranty, and pull up banners are charged at £40+VAT each. If you’d like some for your showroom or reception area please call 01522 515600.

Crystal Clear Warranty Posters and Leaflets, by Warranty Administration Services Ltd

Crystal Clear Warranty Posters and Leaflets, by Warranty Administration Services Ltd

We also have pull-up banners and leaflets promoting our UK nationwide rescue and recovery service, GenAssist, which many of our dealers add to their warranties to enhance the cover level.

GenAssist is fulfilled by a leading supplier at fantastic prices, and can be sold as a stand-alone product for your customers, or as an add-on.

GenAssist is fulfilled by a leading UK supplier, and your customers will be tended to by a uniformed professional carrying all the latest diagnostic equipment and expertise to help your customer. GenAssist comes with one comprehensive cover level including:

  • Homestart
  • Roadside Assistance
  • Nationwide Relay

GenAssist Rescue and Recovery Pull Up Banners, by Warranty Administration Services Ltd

GenAssist Rescue and Recovery Pull Up Banners, by Warranty Administration Services Ltd

To enquire about our pull up banners, free posters and leaflets, or about adding GenAssist to your portfolio, or to enquire about our self-funded Crystal Clear Warranty, please call 01522 515600.


Are you looking to offer a warranty to your customers but would like to know more about self-funded warranties? Click here to see us compare self-funded warranties to the traditional “third party” warranties.

Thank you for reading this post on the WAS Blog!