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The simple solution to running your own warranties…

There is little doubt that for vehicle retailers every area of the business is being squeezed and traditional returns on investment are more difficult to achieve.

With rising premiums from insurance warranty companies and falling profit margins on second hand vehicles there has never been a better time to start running your own warranties.

We have used our experience and knowledge to develop a warranty solution that complies with the EC Directive, does not require FSA registration, and makes running your own warranties easy.

Driver Options is a quality product put together by Trading Standards professionals and is designed to give you the very best protection when running your own warranties.

This is how one of our clients saved £18,000 last year…

Wordsley go their own way

Wordsley Motor Company, based in Stourbridge, sells around 350 cars per year from a single site. The dealer has a £1m turnover, and after its first year trading it began to run its own warranties with the help of Lawgistics.

Its 40 - 50 car stock is mostly four years old or above, and vehicles are checked before they are sold. This means that any problems can be fixed before the customer leaves the forecourt.

"The problem with the big warranty companies is they vary their cover depending on the age of the vehicle," says Wordsley's managing director, Neil Coleman, "and half the cost goes into covering administration."

"In our first year we spent £27,000 on warranties, so we worked out how much it was costing and what would work better for us. Running our own is a lot more flexible, and we can work on the cars straight away because we don't have to wait for an engineer to come out and approve the repair."

"We haven't had any problems, it's a lot easier if anything and it costs about a third of what it used to. I wish I'd done it from day one."

AM Newspaper

June 2007

How to run your own warranties…

·         Each time you sell a vehicle, issue or sell the customer your warranty

·        Save the cost of the warranty or your own contribution in a separate fund

·        Take any valid claims covered under the warranty from the fund

Hundreds of dealers have saved thousands of pounds, increased profits and improved customer care by using Driver Options.

Here’s your chance to join them…

Driver Options includes a range of warranty booklets backed up with a free legal help line and a breakdown recovery. Read more…

There is also an option of a 24/7 claims help line and administration service with access to a national network of garages. Read more…

Already running your own warranties…

Perhaps you have already taken the initiative and are benefiting from the savings of running your own warranties. If so does your warranty comply with the amendments to the Sale of Goods Act and the FSA regulations?

· Is it a verbal warranty? – This could leave you wide open to paying routine wear and tear, tow in charges and bills from expensive dealers. It is also illegal.

· Is it engine / gearbox only? – This could be illegal by restricting your customers’ statutory rights.

If you have not included all the right terms and conditions it can lead to problems from customers, Trading Standards and the Office of Fair Trading.

Does your warranty help maximise profits per sale and provide your customer with the after sales service they deserve?

Hundreds of dealers have saved thousands of pounds, increased profits and improved customer care by using Driver Options.

Here’s your chance to join them…

Driver Options includes a range of warranty booklets backed up with a free legal help line and a breakdown recovery. Read more…

There is also an option of a 24/7 claims help line and administration service with access to a national network of garages. Read more…

Other topics of interest…

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