This is another great marketing tool that will give a Dealer a competitive edge. The 10 Year, 100,000 mile Used Car Warranty is pretty simple. It’s a power train warranty.
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Consider charging $75.00 per car to the cost of every used car that comes into stock. Depending upon the size of the Dealership, some Dealers let that account build up to about $20,000. When it gets above the $20,000 figure some Dealers bring it back to other income. That number may need to be adjusted up or down depending on the volume of used car business a Dealer is doing.
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Generally speaking, you might have one claim about every two months. Certainly that depends on how good of a job you do in reconditioning.
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A Dealer cannot allow this account to handle general policy and reconditioning issues.
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Only the Dealer should sign off on these claims.
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The customer sings off in three places to insure that they understand they must change the oil at the selling Dealer’s Dealership every 3 months or 3,000 miles and the transmission fluid every 12 months or 12,000 miles.
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Always get legal and accounting advice before implementing this or any other type of program we recommend.
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