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Are your dealers fully committed to your used car program? Do they fully support the warranty offer and does every customer get the warranty they should? Be honest here, because we know that warranty is one of those areas that cause many manufacturer programs to fail. Insured warranties are not always best... Insurance backed used car warranties are popular throughout Western Europe but less common in the emerging markets of Eastern Europe. In those markets car dealers tend not to offer warranties or at best they offer a much looser promise to reimburse some repair costs. However, manufacturers are beginning to insist that their Eastern European franchised dealers join their Approved Used Car Programme but insurance backed warranties are expensive and for cost reasons dealers can sometimes be reluctant to participate. For this reason, AMS has developed a common sense solution, which has already been taken up by GM in Slovenia and Croatia and by BMW in Russia. It is also interesting to note that GM Ireland has adopted a version of our scheme. The AMS Scheme: - Dealers issue “own risk” used car warranties · The dealer issues a professionally written, well designed warranty booklet to give the the customer peace of mind. · The booklet includes the manufacturer’s logo and Approved Used Scheme terms. · The terms of warranty cover and duration are clearly stated but the contract is not insured. It is purely a contract between the dealer and the customer. The AMS warranty registration web site allows the dealer to control claims costs · Each time the dealer issues an “own risk” contract of warranty it is registered online with AMS. · When the dealer undertakes a repair under the terms of the warranty, the claim cost is recorded online. · The AMS web site automatically calculates the dealer’s average warranty costs so the dealer can make a suitable provision in the accounts and adjust his premiums accordingly. · At the same time, the AMS online admin system produces sales and performance reports, so that the manufacturer can see the dealer network’s used car sales performance. AMS Warranty administration benefits Dealers like the AMS system because they avoid insurance premiums and are able to keep their cash in the business. At the same time they can keep track of warranty repair costs. Manufacturers like the AMS system because it removes an important dealer objection to joining the Approved Used Car Scheme. At the same time they get sales reports to monitor dealer and national used car performance. |
