5 Advantages to get extended car warranty of your vehicle

An extended car warranty is the best way to cover your car’s ongoing repairs. It is a deal between an individual and a company where the company ensures to cover for the expenses on repairs that will be incurred for the extended warranty is in place. The time period of the extended warranty is almost three to four years.  We all get new vehicles with manufacturer’s warranty. During the period of manufacturer’s warranty you get three to four free services. Apart from that if your vehicle is damaged then it cover by the manufacturer warranty. However, if your manufacturer warranty comes to an end then you might feel worried, because now you have to pay for all the expenses and damages on your car. Don’t worry if your car manufacturer warranty has come to an end, you can purchase extended car warranty from trustworthy companies like Warrantech. An extended car warranty offers peace of mind for the car owner because they know if suddenly their car is damaged then their repairs will be covered by the extended car warranty company.

Today people are hesitant in buying extended car warranty. They have many questions in their minds. It is a good things for them because as a car owner it is important to know what is extended warranty and why should you buy it. Here the 5 advantages of getting extended car warranty for your car. It will help you to know how extended car warranty is beneficial for you.

Peace of mind

An extended car warranty is helpful to cover your vehicle for unexpected repairs and reduces your stress. It gives you peace of mind since care owners are intimidated by the high cost of repairing on their car. Extended warranty is one tool that takes care of the repair costs no matter how high they are without burning a hole in your pocket. As a car owner you don’t have to worry about the finances when your car goes to the mechanic or the body shop for any repairs.

Gives security to your car in bad financial situations

We all occasionally suffer bad financial situations. For this situation, sometimes it can be difficult for us to fulfill our housing, food, medical and other requirements and if in this situation your car is damaged then it can increase your problems. Here is good news for you – if you purchase extended car warranty then you can easily face this situation easily without thinking of the financial burden you are going to go through while getting your car into good shape.

Increase your car’s resale value

Do you know that extended car warranty can increase your car’s resale value? Yes, it is true. An extended car warranty is helpful to increase your car’s resale value. Actually a car with extended warranty will show that the owner is active and keeps their car in good conditions. Apart from that it also reduces the chances of any problems in the car. Apart from this, if the extended car warranty is transferable then it can make your car more attractive for new buyers and can fetch you a good price while selling it.

You can customize extended car warranty according to your needs

You can customize the extended car warranty according to your needs. When you go to purchase extended car warranty then extended car warranty Provider Company might offer you several warranties. Customization of extended car warranty means you can choose extended car warranty according your needs- if you do not want to buy bumper-to- bumper warranty then you can purchase powertrain warranty for your vehicle. Apart from this you can also decide the period of extended car warranty.

Extended Car Warranty is not much expensive

Many people are hesitant to purchase extended warranty because they think that it is an expensive proposition. However, the truth is that your breakdown might be expensive and might cost you a lot of money but the warranty is not much expensive as compared to a breakdown on the road. Actually the warranty cost is dependent on many factors like your car’s age, model, and make year.

Colonnade Provides Insight Into The VSC Industry

A new report from Colonnade Advisors details the significant interest among investors and consolidators in the vehicle service contract industry. The following is an excerpt from the appendix of the whitepaper, which provides an in-depth look at the trends and growth drivers behind this expanding market. 

Strong Macro Trends are Driving Acquisitions and Investments in the VSC Industry 

U.S. consumers spent an estimated $35 billion on VSCs in 2018. VSCs are typically marketed at three points in the life cycle of an automobile:

(i) at original sale (the new vehicle segment – extended warranties),
(ii) near or after expiration of factory warranty primarily via direct-to-consumer sales (the end-of-warranty segment) and
(iii) at resale (the used vehicle segment).

The VSC market benefits from high new and used car sales and increasing penetration rates. Consumers value VSCs as they have limited funds to pay for repair bills and they are owning vehicles longer. Dealerships focus on VSC sales to enhance margins. F&I products provide increasing incremental profitability and represent 25% of total dealership gross profit, compared to 15% in 2009. We expect these dynamics to continue.

The VSC market size has grown by 6.9% to $35 billion since Colonnade’s last whitepaper in August 2017. The growth is attributed to three trends:

1) the increase in attachment rates on new vehicle sales,
2) the increase in used car sales and
3) the increase in vehicles out of the OEM warranty period.

Retail Market for VSCs in 2018 Compared to 2017

New car sales ultimately drive sales in the VSC market. New car sales were 17.3 million units in 2018, a slight increase from 2017. However, VSC attachment rates, or the percent of new vehicles sold with a VSC, have increased significantly in the last year causing the new vehicle VSC market size to increase by 5.9% to $16.2 billion.

Used vehicle sales are at an all-time high level and are driving the purchase of VSCs. Older vehicles have typically outlived OEM warranties and have higher maintenance needs, factors that have a positive impact on consumer demand for VSCs. There has been an influx of late-model off-lease vehicles returning to dealers which are older, higher mileage and outside of the manufacturer’s warranty, thereby increasing the need for VSCs on used vehicle sales. Colonnade estimates that 42% of used vehicle sales through franchise dealerships and 20% of used vehicle sales through independent dealerships have a VSC attached. The estimated franchise attachment rate increased from prior Colonnade analyses based on surveys completed by Baker Tilly and NIADA.

The number of vehicles post-OEM warranty has increased to an estimated 87 million vehicles from 86 million in 2017. These vehicles were post OEM warranty and less than twelve years in service, the “sweet spot” for aftermarket VSCs. Year 2017 represents the fewest vehicles in the sweet spot in the last seven years, as a result of the low number of new vehicle sales during the recession. Our research indicates that longer vehicle life coupled with continued high levels of new car sales post-recession will generate a continued growing market for post-OEM sales of VSCs.

Increasing Number of Vehicles Off OEM Warranty

Of the 276 million vehicles on the road, 48% are eligible for a VSC. This group includes new vehicle sales, used vehicle sales and post-OEM warranty vehicles that are less than twelve years old.

Increasing Consumer Demand for VSCs 

Consumer demand for VSCs is increasing as the vehicles on the road are older and higher mileage vehicles have heightened maintenance needs. U.S. consumers are holding on to their cars for longer than ever, partially due to the higher quality of vehicles.

The average age of passenger vehicles on the road was 11.7 years at the end of 2017, up from 9.6 years in 2002. One of the reasons for the increase was the 40% drop in new vehicle sales in 2008 and 2009. The record number of new vehicles purchased in 2015 and 2016 will slow the rate of increase, resulting in an average estimated age of 11.8 years in 2020, according to IHS Automotive.

Length of Ownership

Vehicle owners are increasing their length of ownership. New vehicle buyers now own their vehicle for 6.6 years compared to an average of 4.3 years in 2006, according to IHS Automotive. Used vehicle buyers now own their vehicles for 5.5 years compared to an average of 3.3 years in 2006. This trend is due to longer loan terms and the higher quality of vehicles. By using longer-term loans, consumers can reduce monthly payments and afford more expensive vehicles. Over 85% of new vehicle and 53% of used vehicle purchases are financed, and six to ten-year loans are becoming more popular. As a result of the extended terms, borrowers are not in a net equity position until their fourth year and frequently beyond the manufacturer’s warranty. To increase a borrower’s ability to pay on loans, lenders include the value of F&I products in loan-to-value calculations as a borrower is more likely to stay current on a functioning car. These trends create the opportunity for higher VSC penetration.

The increasing number of older cars is creating more vehicles that need repairs and maintenance; repairs generally become more expensive as vehicles age. Many consumers are unable to afford repairs as the growth in costs is outpacing wage growth and 40% of Americans do not have $400 in emergency funds. These trends are driving demand for VSCs.

F&I Focus at Dealerships 

Despite improved auto sales, dealership margins remain under pressure, and F&I products provide meaningful incremental profitability. Dealerships have become more dependent on F&I products, as they represent 25% of total dealership gross profit compared to 15% in 2009. This trend will continue as dealership margins on vehicle sales may be squeezed in coming years. In addition to increasing vehicle sales margins, F&I products improve long-term profitability by enhancing customer loyalty and retention by setting the stage for repairs, routine servicing sales and subsequent car purchases at the dealership.

Growth in the number of older vehicles is a positive trend for aftermarket repairs. However, dealerships will face strong competition for these increased repair revenues. Longer periods of ownership take consumers farther away from the selling dealership service lane to less expensive non-dealership repair facilities. Dealers seek to counter this trend by selling VSCs and prepaid maintenance plans to increase the likelihood of drivers returning to the dealerships.

For more details about Warrantech feel free to visit: https://warrantech.com/blog/january-2019/colonnade-provides-insight-into-the-vsc-industry/

NIADA Partners With Fort Worth Dealerships To Offer CPO Vehicles

RB Sales & Leasing and 6th Gear Auto, both of Fort Worth, Texas, are now proud members of the NAIAD Certified Family. To celebrate, NAIAD held kickoff launches at both dealerships.

“It’s important to us to be here,” said Mike Sims, business development manager for program administrator Warrantech. “Not only to us as a whole, but to these dealerships as a client, as a partner of ours with TIADA and NIADA, and everything we do.”

Scott Lilja, NIADA’s senior vice president of member services, was also on hand to offer support and explain the benefits of partnering with NIADA. “We’ve been around for 73 years protecting dealers’ interests, putting together programs to help them get to that next level in terms of differentiation and quality, and trust and transparency with consumers. And that’s what the NIADA CPO program is really about.”

The NIADA Certified Pre-Owned Program offers high‐quality used vehicles backed by a powerful warranty with nationwide reach and by NIADA – a national association whose more than 15,000 members are dedicated to integrity and subscribe to a strict Code of Ethics.

For a vehicle to be considered “NIADA Certified,” it must undergo a 125-point inspection conducted by a licensed repair facility and be backed by a rigorous vehicle history report. Once all requirements have been met, dealers are then able to offer these vehicles to their customers along with a number of features and benefits:

  • A CARFAX vehicle history report
  • Special financing for qualified customers
  • Flexible, fully customization warranty options
  • Roadside assistance, towing, vehicle rental and lost key/lockout service

Offering these benefits is already paying big dividends for both dealerships. “My turnover is in the 40s now and that’s what I’m really proud of,” said Chris Johnson, owner of 6th Gear Auto Sales. “We’re selling cars faster, but more importantly, our systems, our procedures and our policies through Warrantech have helped us sell more cars through our training processes.”

“It adds value to what we’re doing here,” said Shane Collins, general manager for RLB Sales & Leasing. “It adds value to every vehicle we sell. We’ve already seen the uptick – we’re pacing 60 cars this month, last month we did 30 – so we’re excited. It’s going to be a long, happy journey.”

Article Source: https://warrantech.com/blog/november-2018/niada-partners-with-fort-worth-dealerships-to-offe/

Tips to find the best extended car warranty for your vehicle

Image result for Tips to find the best extended car warranty for your vehicle

All vehicles perform an important role in our daily life activities. Proper care and maintenance for every vehicle is needed, for that we need to spend a lot of money. Our vehicle is one of the most important assets we own. In other words it is a big investment for us. We all buy a vehicle with their manufacturer warranty. Generally the manufacturer’s warranty is for three years. That is why, finding a good extended car warranty is very necessary. Extended car warranty is a contract between the company and the car owner. It covers your car’s unexpected repairs within a certain time period and saves your money in the long run. In present times many companies provide extended car warranty. Always choose an extended warranty carefully and buy from a trustworthy company such as Warrantech. Here are some important tips that will help you to find the best extended car warranty for your vehicle.

1.     Compare different extended car warranty companies

Nowadays we can see that many companies provide extended car warranties. Thus, finding the best extended car warranty is very difficult. That is why;first you need to know what you should be looking for in your extended car warranty. After that you can search for the different companies that provide extended car warranty and compare their company plans, prices and offers. Choose the one that you find right.

2.     Read customer reviews and testimonials

Checking out customer reviews and testimonials is another way to find the best extended car warranty.  Read the reviews posted on the company’s website along with reviews posted on yellow pages, yelp or social media. This way you can get an idea of the customer experience that you can expect while conducting business with the extended warranty company. This small exercise of yours will help you to take the right decision.

 

3.     Need to know what coverage is included?

Before buying an extended car warranty you need to take time to read the inclusions and exclusions before you sign because all extended car warranties are not similar, their plans can be different.  Thus, it is important to know beforehand what coverage is included in your warranty. For example if you are concerned about the electrical system in a vehicle then you need to know if your extended car warranty is considering to cover electrical items or not. It is important for your satisfaction because some extended warranties do not cover scheduled maintenance.

 

4.     Do they cancel extended warranty after purchase?

There is another important thing to be considered when you buy extended warranty. Some warranties allows you to cancel a warranty if you are not satisfied with it and they offer you money back guarantee. Don’t buy extended car warranty if a company does not gives a money back guarantee if you are want to cancel it.  The time period to cancel a warranty and getting back money is almost 30 days.

 

5.     Transferable

Transferable is the best feature for any extended warranty. If you warranties are transferable then it is more beneficial for you because you can easily sell your automobile. By this the new car owner gets the used car with warranty and you can sell your car at overprices.

 

Extended car warranty is the best idea to save money because it covers your car for unexpected repairs. Always buy extended warranty from a trustworthy company because it provides you legally named extended service contracts with better coverage and saves you money.

Tips To Avoid Issues With Your Vehicle Service Contract

A vehicle service contract (VSC) is a smart choice for customers interested in protecting themselves from the high costs of vehicle repair. You just need to make sure you know what you’re getting and what to expect in the event that the unexpected happens. Prior to purchasing or filing a claim, here are a few things to consider to ensure that there are no surprises down the road.

  • Make Sure You Aren’t Currently Under Warranty – Check to see whether the coverage of your service contract overlaps with a manufacturer’s warranty. A vehicle service contract might not be right for you if you are already covered. However, if your warranty is about to expire or you are looking for supplemental coverage then purchasing a VSC makes a lot of sense.
  • Know What Your Vehicle Service Contract Covers – Not all vehicle service contracts cover all repairs. Take time to read the inclusions and exclusions to be sure that you’re getting the coverage you want and know when coverage might be denied. For instance, if a contract states that only mechanical breakdowns will be covered, problems caused by normal wear and tear might be excluded.
  • Be Aware Of The Length Of Your Coverage – It happens to the best of us. You think you’re covered, only to find out that your plan has already expired. Make sure your coverage is up to date. And if the service contract lasts longer than you expect to own the car, find out if it can be transferred when you sell the vehicle.
  • Perform Regularly Scheduled Maintenance – Under the contract, you may have to follow all recommendations for routine maintenance, such as oil and spark plug changes. Failure to do so could void the contract. Find out if the contract prohibits you from performing routine maintenance yourself or from taking the car to an independent dealer for work. Also, be aware that unapproved modifications or installing wrong parts could void your service contract as well.
  • Keep All Service Records And Receipts – Create a file to keep track of all the repairs that were performed on your vehicle and be sure to include all receipts. This will come in handy if you ever have to put your vehicle service contract to use. Your claim could be denied if you are unable to show that the vehicle was properly maintained.

For more details about Warrantech feel free to visit: https://warrantech.com/blog/september-2018/tips-to-avoid-issues-with-your-vehicle-service-con/

Customer Commitment – How Our Service Aligns With Your Business

The Warrantech team understands the importance of a positive service experience. We see ourselves as an extension of our business partners on every call and every transaction we make. That’s why we provide our customer service team with the knowledge, training, skills, resources and environment needed to provide an exceptional service experience with every customer.

We also follow a few simple guidelines to maintain high customer satisfaction.

1. Strive To Be The Best
We continuously go out of our way to make sure the quality of service provided to all customers is first-rate. Our quality assurance team monitors all personnel on a daily basis and provides feedback on:

  • Performance and professionalism
  • Customer interaction
  • Procedural adherence
  • Claims adjudication
  • System usage and documentation
  • Call lengths

The Warrantech management team also works to identify strengths and weaknesses so that we can effectively manage our workforce and optimize service.

2. Create A Positive Experience
Our proactive approach creates a customer who is not only satisfied with the outcome of the transaction, but a customer who walks away from the encounter with a confident outlook on their extended service contract, and, most importantly, your business. Through continual training and monitoring, we are able to establish consistency in each interaction and deliver a positive customer experience.

3. Provide Value
Exceptional customer service starts on day one and is built into every service plan program we create. Our transparent approach to claims and loss data, as well as customer service metrics, ensures that Warrantech service plans are priced fairly and provide value to your consumers without being confusing, hard to use, or deceiving.

4. Deliver The Best Possible Solution 
Our flexible approach to service contracts allows us to work jointly with our business partners to ensure the service contract utilized for each program meets their specific needs. Our dedicated team takes time to evaluate your business objectives, determine program structure, and set up administration and support in a way that will help drive customer loyalty and provide the best service possible.

Article Source: https://warrantech.com/blog/august-2018/customer-commitment-%E2%80%93-how-our-service-aligns-with/

Krietz Auto named NIADA CPO Dealer of the Year

Award Recognizes Maryland Dealership’s Rapid Rise to Certified Pre-Owned Success

Krietz Auto, a dealership in Frederick, Md., run by Charlie and Kim Krietz and their sons, Charles and Cory, became the second winner in the award’s three-year history after Todd Hoagey of Auction Direct USA claimed the first two honors.

The award recognizes the quality of dealership operations, the vehicle certification process, the number of CPO vehicles sold and the dealer’s commitment to providing a better product and level of service to his customers and the community.

In accepting the award, Charlie Krietz, who founded Krietz Auto as an auto repair shop 35 years ago, choked up with emotion as he recalled his journey to success.

“The dream I had, the vision, going through the recession and the hardships we went through with the family … to be here today, among a lot of great people, is incredible,” he said. “We’ve had a lot of help. … but our hunger and desire to survive, the passion – it was there.”

When he had to pause to compose himself, Krietz apologized. “I’m a little passionate,” he explained.

While Krietz Auto has been in business 35 years and was Maryland’s nominee for the 2017 National Quality Dealer award, it was only a year and a half ago that Charles Krietz met with Mike Sims of NIADA CPO administrator Warrantech to discuss getting involved in the program.

“I got with my family and said, ‘I met a really good guy today, and I think this is going to be a really good thing for us,’” Charles Kreitz recalled. “Fast forward a year, and we’re standing here getting this award.”

Now Krietz Auto is among the top operations in NIADA CPO sales, at about 180 CPO units per month. The Krietzes certify 100 percent of their qualifying vehicle inventory and have made major investments in training their 50-member staff in CPO sales, marketing, digital merchandising and reward/recognition incentive programs.

As a result, the dealership has doubled its F&I gross margin per unit since launching CPO program.

Krietz Auto is also very involved in its community as a major contributor to local organizations and programs such as 4H scholarships, Toys for Tots and youth sports teams.

Charles Krietz invited his fellow independent dealers to get in on the CPO action.

“Hopefully, all you guys can learn all about the program,” he said. “It’s a really great program. Look into it — you’re not going to go wrong.”

Article Source: https://warrantech.com/blog/june-2018/krietz-auto-named-niada-cpo-dealer-of-the-year/