RSS Feed
Comments
Reply
Warrantech
July 13, 2017 06:27
July 10, 2017 07:35
Getting Your Staff On Board With Your CPO Program Begins With Asking Five Key Questions
So you’ve decided to enter the certified pre-owned business. Now how do you get your staff involved in order to make sure the project actually makes a difference to your bottom line?
Fact is, most programs started by dealerships turn out to be stop-and-start affairs. The initiatives work fine when they are new, but once the spotlight is off they fade away into the darkness.
There’s an old saying in golf that you can’t win a tournament on Thursday, but you can lose it that day. Another golf adage says on that first day you set yourself up for success on Sunday.
That’s how it is with any program started in a dealership.
The watchers and waiters predict the demise of the program and then watch it die because no one participated – specifically, them. Then they brag about how they knew this program would never work.
But an effort from everyone could have made the vision a reality. That’s why it is essential to get buy-in from everybody in the store at the beginning and reinforce that commitment throughout the entire process.
Everyone must understand the mission, because anyone who is not engaged can be the clog that causes the program to fail.
Getting buy-in starts way before opening day.
It is important in the acquisition of buy-in that essential people are made to feel like part of the initial decision-making process. The earlier they feel part of the process, the harder they will work to make the program a success.
That starts with a clear enunciation of the problem we are trying to solve. If there is no problem to solve, then why start a new endeavor?
Usually the problem is the need for more sales, more profit or a combination of both, which translates into the continued success of the store.
The different departments will look at new programs in a much different manner. But they all must be brought in, because unless they see a process that has benefits to them and their department, they will not be part of its success.
In the sales model of Harold C. Cash and W.J.E. Crissy, two college professors who wrote an often-cited work on sales psychology, the findings showed while it is important to have a proper introduction, the need awareness module is the most important part of the sale, because it opens the door to a solution.
Unless there is an awareness of the need for a product or service, the call to action – which is sales – will go unheeded.
Clearly laying out the need will help the department heads arrive at the conclusion you want them to.
The old car guys always defined sales as “giving the customer enough information to allow them to arrive at the conclusion you want them to.” Once they buy into that conclusion, they will be sold and it will become their program.
So how do you accomplish that?
As renowned leadership authority Stephen Covey said, you need to begin with the end in mind.
In a speech to the graduating class of the Harvard Graduate School of Education, dean James Ryan claimed that there were five essential questions that must be asked of any enterprise to find the motivation for long-term success.
The first of those questions is: Wait, what? That’s about slowing down the flow of information coming in and gaining clarity about the project.
The employee team must understand the idea before they can advocate for the program. Or, as Harvard sociology professor Rakesh Khurana said, “You must emphasize inquiry before there can be advocacy.”
The team may say they are behind a program to make the owner happy, but until they can think like the owner and understand how certified pre-owned can create a different outcome for the future of the business, there will be no dedication.
“Wait, what?” is the question that must be asked once you arrive at the conclusion that you need a certified pre-owned program to be competitive in the marketplace and create a long-term commitment with your customers. The reason is that a long-term commitment is what millennials are looking for when they buy cars.
So the answer to, “Wait, what?” is, “We are going to sell the same vehicles, purchased from the same locations – so there is no change in your vehicles – but with a guarantee from you that the customer is going to have a worry-free ownership experience. We establish that worry-free experience by providing a warranty on our vehicles, even the vehicles with 140,000 miles on them, if they pass inspection.”
What happens with your staff when you’re explaining your desire to change your relationship with your customers? They hear Charlie Brown’s teacher: “Wah-wah-wah-wah.” Then you hit on something important. Suddenly, it’s, “Wait, what?”
That’s right. This is how we are going to compete with new car franchises for customers and dominate the local competition – by giving our customers more and elevating our reputation in the community. In other words, we are going to unlevel the playing field.
As your salespeople settle back into reality, the next question is, “Who is going to pay for this relationship?”
Certainly, creating an environment that will allow customers to feel comfortable with the purchase of cars from your lot will create repeat business in the long run. But who pays in the short term is what salespeople fear the most.
The quick answer is, like everything in the car business, it is paid for by the customers. Salespeople sell from invoice – since the warranty cannot be charged for, certification becomes an invoice item.
More importantly, offering a warranty creates value in the upsell. Most of the dealerships in the NIADA Certified Pre-Owned program report upsell numbers of 65 percent or better.
“With 65 to 75 percent of the customers buying the upsell service contract, it isn’t hard to see how quickly this becomes a profit center,” said Natalie Suarez, national director of the NIADA program for administrator Warrantech. “Keep in mind that with NIADA if the customer buys the upsell, the dealer does not pay for the certification warranty.”
That means that with a concentration on selling extended service contracts, the customers pay for this program along with providing a new source of gross profit.
The service department’s concerns come from their fear of the unknown. Those guys know about programs that pay 80 percent or limit repair charges, making every repair a fight with customers and the claims department.
To get service buy-in, find a program that pays retail parts and labor.
Surveys show customers currently using the dealership’s repair facility will repeat their purchase with that dealer almost 65 percent of the time when they’re ready to purchase a different vehicle. If your certified program allows a disappearing deductible – which brings customers back to your facility – it has the dual benefit of creating more profit in service and selling more cars.
The “Wait, what?” answer for service is, “We are going to cover people for a longer time, giving them a better car-buying experience and creating at least two new profit opportunities.”
Getting your team together early and laying out the need awareness with “I wonder” starts a collective discussion that leads to the conclusion you desire.
For example: I wonder what would be the result if we developed a reputation for giving used car customers a new car experience. I wonder how we could accomplish that.
When the staff is involved all the way from “I wonder” to program inception, it is hard for them not to be engaged.
The next question in Ryan’s process is: “Couldn’t we at least…?” Couldn’t we at least look into a program? Couldn’t we at least lay out the parameters of what this would look like?
Once that is opened, you get past the original disagreements and dissenters and move on to mapping out a process, even if your staff is not entirely sure where you are going to finish with it.
Next is: How can I help?
John Kennedy stirred the country by saying, “Ask not what your country can do for you. Ask what you can do for your country. Not what America will do for you, but what together we can do.”
In this case, everybody needs to ask, “How can I help?”
It’s instinctive in humans to help out. There is a human function called the rule of psychological reciprocity, which means we treat others as they treat us. Asking the staff for help creates a desire for them to put an effort into the final decision. It gives them a feeling of importance and empowers them by recognizing their expertise.
The dealer asking how he or she can help and the staff asking themselves about their path to success and how can they play a vital part in it can lead those who buy-in to do extraordinary things to ensure the continued success and viability of the program.
The final question is, “What truly matters?”
“This is the question,” Ryan explained, “that gets to the heart of your own beliefs and convictions.”
Allowing the staff to participate in the certified pre-owned journey to its conclusion is the way to capture the future of your market – because CPO is the future of the used automobile market.
Your staff is likely to adopt the program as theirs and as imperative to their future. When your staff shares what truly matters and what is your heart’s desire, your ideologically synchronized management team becomes a powerful force in the market place.
So how do you set yourself up to win on Sunday by the way you play on Thursday?
First, get the right program – one that pays retail parts and labor, and has an unremitting drive for customer service as shown by Better Business Bureau and other monitoring agencies.
Quite simply, you have to have a program to compete with factory certification programs. The strength of the factory programs is name association with the manufacturer of the automobiles being purchased. That is tough to overcome.
But by using a nationally known entity backed by the same organization that operates the OEM’s programs, you can give your program credibility.
Once you have the right program, set your dealership up to succeed by assembling your key people – managers, finance, service, used vehicle buyers and the person who will be doing the certified vehicle inspections – and spending quality time together debating and analyzing the five questions: “Wait, what?,” “I wonder,” “Couldn’t we at least…?,” “How can I help?,” and, “What truly matters?”
When you arrive at the conclusion that the success of everyone and the dealership is tied to capturing the future, and the CPO program you’ve picked will help in accomplishing that goal, you’ll have developed a program that will continue paying dividends well into the future – and a team dedicated to keeping the process going.
For more details about Warrantech feel free to visit: https://warrantech.com/blog/july-2017/all-in/
June 21, 2017 07:28
Our Financial Strength Is Your Peace Of Mind
An extended service plan is a smart move. It confirms that you do indeed have a specific idea of how your products will be used and a reliable backup plan should anything go wrong. But in addition to giving time and thought to the type of coverage you’re interested in, it makes just as much sense to consider the company who will be backing your contract.
With more than 30 years of leadership in service contract administration, Warrantech is comprised of industry veterans who average more than 23 years of experience in program evaluation and design. This wellspring of knowledge provides us with vast insight and enables our team to uncover hidden growth opportunities and structure programs that offer a high-value proposition for our partners and their customers.
Warrantech is also a subsidiary of AmTrust Financial Services, Inc., one of the strongest, most financially secure insurance companies in the industry. With an unwavering focus on your success, we go out of our way to deliver unparalleled service excellence in all that we do.
• A.M. Best rating of “A” (Excellent)
• Named to the 2017 Fortune 500 list
• Ranked 63rd on Fortune Magazine’s Fastest Growing Companies
• Named “2014 Best-Managed Company (Insurance)” by Forbes magazine
• Recognized as the most “warranty-centric” company in the industry by Warranty Week
• Ranked 6th nationwide in National Association of Insurance Commissioners (NAIC) March 2014 workers’ comp market share report
• A+ rated and accredited by the Better Business Bureau
• Publicly traded (NASDAQ: AFSI)
• More than $23.9 billion in assets
• Multinational operations with offices worldwide
Having this financial strength allows us to bundle both underwriting and administration. And, as a result, it creates complete transparency and visibility to information that enables our customers to change and create plans that are both highly customized and profitable.
So whether you’re a customer, retailer, dealer, distributor, or manufacturer in the consumer or automotive market, Warrantech has a knowledgeable team that can provide a customized solution that will work specifically for you. And, just as important, offer you the financial stability to back it up so you can rest assured that you’re getting the best plan possible.
June 9, 2017 06:44
AmTrust Financial Services, Inc. Earns Distinction as Fortune 500 Company Following Record Year of Revenue
Achievement Recognizes AmTrust’s Long-Term Success
NEW YORK, June 07, 2017 (GLOBE NEWSWIRE) — Warrantech’s parent company, AmTrust Financial Services, Inc. (NASDAQ:AFSI) (the “Company” or “AmTrust”), today announced that the Company has been named to the prestigious Fortune 500 list for the first time. The list celebrates the largest companies in the U.S. by total revenue.
This achievement is a recognition of AmTrust’s financial strength and stability and follows a year of record revenue for the company. AmTrust’s total revenue in 2016 was $5.45 billion, an increase of 18% over the prior year.
Since its founding in 1998, AmTrust has grown into a multinational property and casualty insurer with nearly 8,000 employees in more than 125 offices serving 70 countries around the globe. In the U.S., AmTrust is one of the top three providers of workers’ compensation insurance and one of the top three warranty writers. AmTrust is also a top 13 Lloyd’s manager by capacity. As an innovative, technology-driven provider of insurance products, AmTrust has earned a prestigious “A” (excellent) rating from A.M. Best.
“AmTrust is honored to join the Fortune 500 alongside an elite group of successful companies, and we’re very grateful to our partners, brokers and agents for their trust in us as we reach this milestone,” said Barry Zyskind, Chairman and Chief Executive Officer of AmTrust. “AmTrust’s inclusion in the Fortune 500 is possible thanks to the hard work and dedication of our people, who live our core values of integrity, diversity, accountability, teamwork, community engagement, and a spirit of entrepreneurship. We adhere to these values every day allowing us to continue to successfully build a best-in-class property and casualty insurer for our valued partners and customers.”
AmTrust was ranked 475 on the 63rd annual Fortune 500 list.
About AmTrust Financial Services, Inc.
AmTrust Financial Services, Inc., a multinational insurance holding company headquartered in New York City, offers specialty property and casualty insurance products, including workers’ compensation, commercial automobile, general liability and extended service and warranty coverage through its primary insurance subsidiaries rated “A” (Excellent) by A.M. Best.
May 11, 2017 06:32
Spread The Word
To Succeed in the Lucrative CPO Market, You Need to Make a Commitment – and Make Sure Your Customers Know It
As many as 60 percent of all pre-owned customers are interested in seeing a certified vehicle, and the CPO market continues to grow – 2016 was the sixth consecutive year of record CPO sales.
Those statistics lead to an important question dealers should be asking themselves: “How can I get my share of that segment?”
It’s simple. Find a certified pre-owned program you like and start advertising.
When starting a certified pre-owned program, it is best to remember a saying I once read in a fortune cookie: “Who saw the antelope jump in the forest?”
That might sound silly, but it points out that while few of us will ever see an antelope jump in the forest, everyone can visualize it because they have read and seen pictures. No event can be widely known and accepted unless it is publicized with a message broadcast to the public.
That’s the message of that supposedly ancient Chinese proverb. If you want your program to succeed, you must be ready to broadcast your commitment loudly and constantly to everyone.
When deciding on a CPO program, the gains must be weighed against the costs. And the best way to achieve a positive in that equation is to make a full commitment to the program.
Your commitment needs to be accepted by everyone involved – your employees, customers and even the people you get your inventory from.
In order to broadcast that commitment, you must analyze why you are starting this project in the first place.
In the car business it is always about profit, which usually comes from selling more vehicles or making more on the ones that we sell. For dealers, that is the purpose of a certified pre-owned program.
The logical first step is to analyze what commitment you are making.
In some cases a dealer will be changing his market niche to a certified pre-owned inventory or elevating his inventory to more current models. Most dealers, though, will still be acquiring the same type of inventory, and will most certainly be getting it from the same places.
For them, the commitment isn’t to better cars or inventory. Rather, it’s to providing a better ownership experience for the customer.
CPO accomplishes that by backing what customers purchase in a manner that gives them the peace of mind that they did the right thing by buying the vehicle from the dealer that they purchased from.
That’s a long way of saying the commitment is just the right thing to do.
And if you are going to do the right thing, you might as well do it the right way. When looking at CPO, you need to have a program that follows three main criteria in governing the quality of the warranty.
First, you must have an administrator that has the capacity and desire to pay claims promptly. That is easily ascertained by looking at the administrator’s other customers. You’ll want to partner with someone who has partnered with the giants in your industry.
Second, the idea of CPO is to sell more cars and create more repeat business. That means the CPO program you commit to must have an unremitting drive to customer service.
Remember, the customers who interact with your claims administrator are going to be in what is for them a crisis situation. When it comes to encouraging repeat business, it’s here the difference in warranty companies is felt.
The third criterion is name recognition. Not simply because the name is recognized, but because the name is known or can be explained as synonymous with high ethics in the used car business.
Once you have found that, you’ll have something worth broadcasting.
When a dealer makes a commitment to any program, it is critical to the success of the program to broadcast it to the widest audience. The beginnings of success depend on how this project is presented to all parties.
Studies show that resolutions of any kind made in quiet are not as successful as those that are written, posted and told to as many people as possible.
Kevin Corley, owner of Second Chance Auto in Charleston, S.C., recently made the CPO commitment. He chose to use the NIADA Certified Pre-Owned program because it provided the necessary three criteria.
Since General Motors and Microsoft had done due diligence on the administrator, he felt he could trust it to pay claims. He found the principles NIADA was founded on mirrored his. And he saw the NIADA shield would be recognizable in his advertising media, helping to brand him as a certified pre-owned dealer.
Once Corley had made his commitment, he wanted to make sure that everyone knew what he now represented at his car lot.
“Kevin is so excited about representing this program,” said Mike Sims, an NIADA CPO program representative, “that we actually baked a cake.”
Corley demonstrated his commitment in a meeting with his entire company. In that meeting, he expressed his wish for the employees to embrace the program – and he capped the meeting with the aforementioned NIADA-themed cake.
He explained that when you start a program with a special event like the cake ceremony, the employees know it is different – and a very important.
Once he had announced the program to his people, Corley immediately wanted to get the word out to his clients. So he broadcast the announcement of his new program on his number one marketing tool, Facebook Live, from which he can broadcast his entire operation to the customers – from coming off the truck through make-ready to on the lot.
The result?
“We had 363 likes from broadcasting the cake ceremony in a matter of minutes,” said Corley. “The thing is, if they are watching on Facebook Live, they are in the market to buy a car, whether they know it or not.”
Second Chance Finance Manager Milan Edwards said the Facebook broadcasts make a big impact on consumers.
“By the time customers watch a car go through the inspection process – the cleanup process, even pulling the car off of the truck – on the Facebook Live broadcast, they are ready to belong to something special,” she said.
“Since the store has been involved with NIADA Certified Pre-Owned, we’ve sold 26 vehicles. Nine of those were CPO deals that would have gone somewhere else had we not notified our constituents of our commitment to this program.”
Donald Holt, Edwards’ associate in the finance department, pointed out that only one of those nine early CPO sales was hesitant to extend the warranty protection with an extended service contract.
“And her husband was a mechanic,” he said. “Once they know the program, it is not selling to get them to do the upsell. It’s just filling out the paper work.”
Making sure the public knows about your commitment to their vehicle purchase is important in driving customers from the Internet to your car lot.
Having vehicles marked as certified pre-owned on your dealership website is a good start. A deeper dive is using a CPO program that coordinates with websites such as Carfax or eBay. When you post your CPOs and they show up at the top of the selection criteria because of certification, it allows you to charge into the growing millennial CPO market.
Dealers can also broadcast their commitment to CPO by emphasizing the program in their lot decorations.
“NIADA Certified is actually a full marketing program that allows the dealer to maximize exposure to the public of his certified pre-owned program,” Sims said, including numerous marketing materials to dress the lot for the success of the program.
Corley’s business partner Derrick Middleton said the pole banners provided by the NIADA program “create an atmosphere or excitement and tell the customer we have cars that have been given special consideration.”
And that excitement, combined with a strong CPO program, can give independent dealers a boost in their competition with franchise dealers for market share, said Natalie Suarez, national director of the NIADA program for administrator Warrantech.
“Those dealers who fully commit to a program such as this find that the more they promote the certified pre-owned concept, the easier it is to compete with the local new vehicle franchises for certified buyers,” she said.
“When they are part of the NIADA program and use their online and on-lot methods of marketing their vehicle as certified, dealers see an increase in all traffic – phone, Internet, appointment and walk up.”
Dealers who have been successful in implementing programs such as NIADA’s say it is extremely important to get the information out to your potential customers before they are looking so they know they can find a certified pre-owned vehicle on your lot.
And, they say, it is equally important to continue to broadcast the program’s benefits once the customer is on the lot.
Auction Direct USA is one of the nation’s largest used vehicle operations, with stores in Rochester, N.Y., Raleigh, N.C., and Jacksonville, Fla. In 2016, its managing partner, Todd Hoagey, was named NIADA’s CPO Dealer of the Year.
Broadcasting its commitment to NIADA Certified Pre-Owned has been incorporated into the dealership’s sales system.
When customers arrive at Auction Direct they are met by a salesperson who “walks their wall.” The wall shows the story of the store, including how and why Auction Direct adopted its marketing system. And it all starts with the commitment the store makes to the customer through the CPO program.
“Starting the sales process with the certified pre-owned explanation is integral in establishing a trust between us and our customers,” Hoagey said. “It makes it clear up front that this store is special and the customer can feel safe with our process.”
One way to advertise the program is to dress the cars on the lot to identify them as having gone through the 125-point inspection required for NIADA certification. That can be accomplished with windshield banners that are visible from the street, as well as mirror hangtags that remind customers the vehicle has been through a special process and therefore is provided with coverage that most pre-owned vehicles don’t have.
So who saw the antelope jump in the forest?
Almost no one. But through broadcasting the beauty of the event, everyone knows about it.
When you broadcast in all of your media – Internet, newspaper and radio/TV ads, on your cars, in your sales process – you can get that all-important bump in sales.
“Once customers know about this program, why would they shop anywhere else?” Second Chance Auto’s Milan Edwards said.
The key is making sure your potential customers know about the program and your commitment to their ownership experience. That includes consistent messaging and using identifiable logos that flow throughout your advertising, allowing you to be successful by branding yourself as a dealer customers can count on.
For more details about Warrantech feel free to visit: https://warrantech.com/blog/may-2017/spread-the-word/
May 9, 2017 08:10
AmTrust Financial Services, Inc. Reports First Quarter 2017 Net Income
AmTrust Financial Services, Inc. (Nasdaq:AFSI) (“the Company” or “AmTrust”) today announced first quarter 2017 net income attributable to common stockholders of $22.6 million, or $0.13 per diluted share, compared to $84.0 million, or $0.47 per diluted share in the first quarter 2016. For the first quarter 2017, operating earnings was $55.7 million, or $0.32 per diluted share, compared to $122.9 million, or $0.69 per diluted share, in the first quarter 2016. Net income and operating earnings in the current year were impacted by catastrophe losses of $16.4 million after-tax ($25.3 million pre-tax), or $0.10 per diluted share.
“We achieved record gross written premium of $2.3 billion, driven by continued organic growth and contributions from prior acquisitions in our Small Commercial Business and Specialty Risk and Extended Warranty segments. Strong service and fee income and investment results also contributed to higher revenue, up 13.6% over the first quarter a year ago,” said Barry Zyskind, Chairman and Chief Executive Officer, AmTrust.
“Operating earnings of $55.7 million, or $0.32 per diluted share, reflect several items including primarily the impact of catastrophe losses related to wind and hail events in the personal lines business of Republic Companies, which is included in our Small Commercial Business segment, prior year adverse development related to one discontinued general liability program in our Specialty Program segment, higher professional service fees of approximately $17 million, and a higher effective tax rate compared with the prior year period. The first-quarter 2017 combined ratio of 95.6% includes approximately 2.1 percentage points related to the catastrophe events and 1.6 percentage points of prior year reserve development, resulting in an underlying combined ratio of 91.9%.”
First Quarter 2017 Results
Total revenue was $1.4 billion, an increase of $171.5 million, or 13.6%, from $1.3 billion in the first quarter 2016. Gross written premium was $2.3 billion, an increase of $333.2 million, or 17.2%, from $1.9 billion in the first quarter 2016. Net written premium was $1.3 billion, an increase of $123.4 million, or 10.1%, compared to $1.2 billion in the first quarter 2016. Net earned premium was $1.2 billion, an increase of $148.3 million, or 13.8%, from $1.1 billion in the first quarter 2016. The combined ratio was 95.6% compared to 91.9% in first quarter 2016.
A summary of Q1 results is listed below along with a link to the earnings release.
First Quarter 2017 Highlights
• First quarter gross written premium of $2.3 billion and net earned premium of $1.2 billion, up 17.2% and 13.8%, respectively, from the first quarter 2016
• First quarter service and fee income of $137.5 million, up 6.7% from the first quarter 2016
• First quarter net income attributable to common stockholders of $22.6 million, or $0.13 per diluted share, compared to $84.0 million, or $0.47 per diluted share, in the first quarter 2016
• First quarter operating earnings of $55.7 million, or $0.32 per diluted share, compared to $122.9 million, or $0.69 per diluted share, in the first quarter 2016
• First quarter combined ratio of 95.6%, compared with 91.9%, in the first quarter 2016
• First quarter catastrophe losses of $25.3 million (pre-tax), compared to $2.0 million (pre-tax) in the first quarter of 2016
For more details about Warrantech feel free to visit: https://warrantech.com/blog/may-2017/amtrust-financial-services,-inc-reports-first-qua/
April 11, 2017 02:47
How To Beat The High Cost Of Appliance Repair
It’s inevitable. No matter how well your home appliances are built, at some point they will reach their life expectancy and stop working. So can you afford to be without yours for long? Do you have a backup plan in place? And, more importantly, do you have enough money saved up to cover the repair or replacement?
According to Home Advisor, the average cost to repair an appliance is $170. But prices can vary greatly once you include such variables as the make, model and age of your appliance, as well as parts, labor and applicable service fees. For more accurate pricing, you can visit Home Advisor’s site to search by location or use the figures listed below as a rough estimate of what you might expect to pay per appliance.
Average Repair Costs
Air Conditioner $200-400
Clothes Dryer $100-400
Dishwasher $100-200
Furnace $100-130
Microwave $75-150
Range/Oven $400-700
Refrigerator $200-400
Washing Machine $120-500
Water Heater $90-110
Now consider your own budget. If you have enough money set aside to cover all of the above, then you’re probably not too concerned. However, a recent survey by GoBankingRates showed that 69% of all Americans have less than $1,000 in savings. So if you fall in that category and suddenly find yourself without something as important as your refrigerator, the problem can go from bad to worse. There’s the added stress of having to spend your time being forced to go out to eat and the increased frustration of losing even more money due to food spoilage.
So how do you avoid this scenario? “While some maintain consumers should put aside cash for repairs and replacement of essential electronic products or appliances, it is not possible or practical in today’s economy,” says Timothy J. Meenan, Executive Director of the Service Contract Industry Council. “An extended warranty [service plan] can help consumers manage unanticipated, unbudgeted expenses.”
It’s worth noting that just one service call can more than make up the price of an extended service plan. That fact alone makes it worth owning one. But when you consider that an extended service plan also provides you with added peace of mind, immediate assistance and may even cover ancillary damage such as food loss, suddenly it becomes an invaluable, yet inexpensive plan to help you manage the welcomed inevitable.
Want to know more about the benefits of owning an extended service plan? Visit our site or call us at 800.833.8801.
For more details about Warrantech feel free to visit: https://warrantech.com/blog/april-2017/how-to-beat-the-high-cost-of-appliance-repair/
March 25, 2017 06:28
AmTrust Financial Services, Inc. (Nasdaq:AFSI) ("the Company" or "AmTrust") today reported 4th quarter 2016 net profit because of common stockholders of $98.7 million, or $0.57 each diluted share, as opposed to $59.7 million, or $0.35 per diluted share in the 4th quarter 2015. For the fourth quarter 2016, operating earnings had been $66.3 million, or $0.38 per diluted share, compared to $115.7 million, or $0.67 per diluted share, in the 4th quarter 2015. The particular decrease in net profit owing to typical stockholders and also operating revenue echos a reserve charge of $65.0 million, or even around $0.24 per diluted share, mainly based on fortifying of prior year loss in addition to loss adjustment stocks inside our Specialty Program segment.
"Our fourth quarter caps a robust year in which we accomplished and also integrated various strategic acquisitions, supplied higher investment returns, attained record revenue, strengthened our balance sheet through favored stock issuances, returned more than $262 million of capital to stakeholders by means of common share repurchases in addition to dividends, plus created book value per share of $15.15 at year-end, an increase of over 17% from a year ago," proclaimed Barry Zyskind, Chairman and Chief Executive Officer, AmTrust. "We are really pleased with the actual operational performance of our company inside the fourth quarter as well as in 2016, a year in which we continued to maintain higher amounts of policy retention and maintain underwriting self-control. While our cost ratio was elevated in the 4th quarter, because of generally to business mix as well as higher expenses connected with increased year-end resources, expenses were otherwise in accordance with our net earned premium growth."
"Our mixed ratio of 95.5% inside the fourth quarter reflects our ongoing profits, specifically in our two biggest sections, Small Commercial Business as well as Specialty Risk along with Extended Warranty, but we're conditioning prior year loss and loss adjustment reserves inside our Specialty Program segment following substantial internal actuarial reviews. Since we have noted prior to now, this segment has underperformed when compared with our objectives, which often led us to put in new leadership also to modify our method of writing programs for commercial auto, general liability, and workers' reimbursement. We are positive that we are adequately reserved on our merged book of commercial. There is also a firm base to create upon inside 2017, and are dedicated to making investor value as a result of disciplined growth and also steady comes back."
Fourth Quarter 2016 Results
Total revenue was in fact $1.42 billion, an expansion of $219.4 million, or 18%, from $1.20 billion inside the fourth quarter 2015. Gross written premium was $1.91 billion, an increase of $299.8 million, or 19%, from $1.61 billion within the fourth quarter 2015. Net written premium had been $1.15 billion, a rise of $81 million, or 8%, as opposed to $1.07 billion inside the 4th quarter 2015. Net earned premium was $1.22 billion, a boost of $157.7 million, or 15%, from $1.06 billion in the fourth quarter 2015. The combined ratio was 95.5% in comparison with 91.9% in fourth quarter 2015.
Total Year 2016 Final results
Total revenue was $5.45 billion, a growth of $837.7 million, or 18%, from $4.62 billion in 2015. Gross written premium was $7.95 billion, a boost of $1,149.7 million, or 17%, from $6.80 billion in 2015. Net written premium was $4.85 billion, a rise of $591.3 million, or 14%, coming from $4.26 billion in 2015. Net earned premium of $4.67 billion increased $646.2 million, or 16%, coming from $4.02 billion inside 2015. The combined ratio was 92.1% when compared to 91.1% in 2015.
A report about results is listed under along with a link to the earnings release.
Financial Highlights
4th Quarter and also Full Year 2016 Highlights
• Fourth quarter gross written premium of $1.91 billion as well as net earned premium of $1.22 billion, up 19% and 15%, respectively, from the 4th quarter 2015
• 4th quarter service in addition to fee income of $151.0 million, up 26% from the 4th quarter 2015
• Fourth quarter net gain because of common stockholders of $98.7 million, or $0.57 per diluted share, when compared to $59.7 million, or $0.35 for each diluted share, inside the 4th quarter 2015
• Fourth quarter operating earnings of $66.3 million, or $0.38 for every diluted share, in comparison with $115.7 million, or $0.67 for every diluted share, inside the 4th quarter 2015
• Current period net income attributable to common stockholders in addition to operating earnings incorporate a reserve charge of $65.0 million, or about $0.24 for every diluted share;
• Fourth quarter and full year combined ratio of 95.5% and 92.1%, correspondingly
• Full year 2016 capital returned to shareholders of $262.4 million, including $152.3 million of common share repurchases
To view AmTrust Financial Services’ Q4 earnings release, go to the Investor Relations section at http://ir.amtrustgroup.com or click on the following link: http://ir.amtrustgroup.com/releasedetail.cfm?ReleaseID=1014558
For more details about Warrantech feel free to visit: https://warrantech.com/blog/february-2017/amtrust-reports-fourth-quarter-2016-net-income,-re/
Posted March 25, 2017 06:28
March 16, 2017 04:39
Dealerscope Warranty Roundup: 2017 Goals & Strategies
Sean Stapleton, president & CEO of Warrantech, recently spoke with Dealerscope magazine as part of a discussion on upcoming company initiatives. The following is an excerpt, providing a brief glimpse of what Warrantech has in store for 2017 to help businesses increase their extended service plan offerings and give customers the most value for their money and a worry-free shopping experience.
Warrantech has developed a revolutionary new customer loyalty program for its partners that is designed to generate both recurring protection plan revenue and long-term customer retention.
The program allows retail partners to offer their customer base customized protection bundles for major appliances, mobile devices and connected living products owned by the customer, regardless of where the product was purchased. Partners have the ability to offer their customers monthly product protection subscriptions designed to enhance the customer’s experience with a full menu of features including 24/7 tech support and seamless repair/replacement solutions.
The program can be customized to provide disappearing deductibles for services or products provided to customers under the plans procured through the participating partners, thereby incentivizing customers to remain loyal to the partner retailer. Moreover, the rich data from the program can be monetized to help deliver targeted and personalized product offerings to customers based on their recent program usage.
Look for the full article in the March 2017 issue of Dealerscope or online at http://bit.ly/2mKB0iJ
March 8, 2017 00:24
Warrantech Partners with Encompass for Sourcing and Procurement of Parts and Product replacements
LAWRENCEVILLE, Ga., Jan. 04, 2017 (GLOBE NEWSWIRE) — Encompass Supply Chain Solutions, Inc. (“Encompass” or “the Company”) a leading provider of 3PL and 4PL solutions for a diverse range of replacement parts and finished goods, today announced it has been selected by Warrantech, an AmTrust Financial Services Company and one of the country’s largest extended warranty administrators, to help provide parts and product procurement in support of Warrantech’s extended warranty service objectives.
Encompass will provide repair parts to the Warrantech service network, or replacement products in the event parts are not readily available or repairs are not economically feasible. The Company’s highly-seasoned Purchasing team will leverage its global network of vendors to support multiple product categories, including Consumer Electronics, Home Appliance, Heating and Cooling, Computer, Imaging, Mobile Devices and others.
Encompass Purchasing will be focused on creating a world-class service experience for Warrantech’s customers and the brands it supports, while helping to manage costs, decrease turn time and positively impact severity.
Encompass expects to reduce expensive buyouts to consumers. As Encompass President and CEO Robert Coolidge noted in a recent blog post, the use of gift cards or other means for warranty reimbursement to consumers versus repair or replacement is costly to warranty companies and raises the risk of brand displacement for manufacturers.
“In our ongoing mission to help our clients be more successful, we aim to curtail the industry practice of compensating consumers with gift cards to replace a defective product,” said Coolidge. “This can lead to brand displacement and decreased customer satisfaction as end users are now being tasked to find another product. Manufacturers should want to do whatever it takes to keep their brand in the customer’s home and maintain low repair costs.”
To provide hands-on service to Warrantech, Encompass will embed a dedicated team of Encompass employees within the Warrantech infrastructure, as well as inside key partner facilities – a practice that Encompass has deployed with other strategic partners with great success.
“Working side-by-side with Warrantech on site will enable Encompass to more efficiently resolve issues and eliminate communication gaps to help expedite customer claims resolution,” said Ariel Gorelik, Chief Operating Officer, Warrantech.
About Warrantech
Warrantech is a subsidiary of AmTrust Financial Services, a multinational property and casualty holding company that is rated “A” (Excellent) by A.M. Best Company for their financial strength and stability. An innovative, technology-driven company, AmTrust brings its financial strength to Warrantech, enabling it to offer a unique, bundled approach that includes both underwriting and administration. This creates transparency and visibility to information that enables customers to change and create plans that are both highly customized and profitable.
About Encompass Supply Chain Solutions, Inc.
Encompass is a market leader in forward and reverse supply chain management and high-tech repair services for a diverse and expanding range of consumer electronics, computer, major appliances and imaging products. Encompass provides end-to-end solutions for OEMs, retailers, independent dealers and third-party administrators.
Encompass manages all stages of the product lifecycle, including finished goods and replacement parts logistics, board repair and product refurbishment services, returns management, asset value recovery and eco-friendly disposal. For more information, please visit encompass.com and encompassparts.com and follow us on Facebook, LinkedIn and Twitter.
March 2, 2017 07:08
Extended-Service Contracts Help Build a Comfort Zone – and Long-Term Relationships – with Customers
The following is an excerpt from an article by Jeff Crider, which appeared in the 2017 Jan./Feb. issue of RVBusiness. The full article can be found at: http://bit.ly/2m9hhac
“The quality of RVs in general has improved, but there are more and more gadgets,” said Joe Suttera, Warrantech’s vice president of specialty products. “From a warranty standpoint, there is certainly a lot more risk than there ever has been when it comes to these units.”
The continued growth of the RV industry in 2017 is good news not only for the nation’s RV manufacturers, aftermarket suppliers and retail dealers, but also for the companies selling extended-service contracts to this emerging wave of RV consumers.
In fact, the extended-service-contract business is booming, companies told RVBusiness, due to this sustained increase in the sales of new and used towable and motorized RVs.
Indeed, the industry is currently experiencing its eighth consecutive year of growth, with wholesale shipments of new RVs expected to increase 4.4% in 2017 to 438,000 units, according to projections by Richard Curtin of the University of Michigan’s Consumer Survey Research Center.
That continuous flow of new- and used-vehicle sales creates huge opportunities for dealers to sell their customers extended-service contracts, the cost of which is typically added to the vehicle loan at the time of purchase.
Regardless of whether their RV is new or used, consumers want to have peace of mind knowing that unexpected repair costs will be covered when their vehicle’s warranty runs out. While manufacturers provide different types of warranties to cover things that can malfunction in the mechanical and living areas of an RV, warranties only last for specific periods of time. Extended-service contracts have been designed to extend warranty protections for additional periods of time with varying levels of coverage and cost.
Extended-service contracts are also available to cover things that are not typically covered by factory warranties such as roadside assistance, tire-and-wheel coverage and paint-and-fabric coverage.
Millennials, in particular, are in tune with the latest innovations in technology and they want it to work.
Extended-service contracts can cover these items after the warranties expire to give consumers peace of mind with their RV purchases, regardless of whether they have new or used vehicles.
Bill Gilman, senior vice president of sales for Warrantech, an AmTrust Financial Company based in Bedford, Texas, said there were more “fit and fitness issues” with RVs back in 2007 when the RV industry was struggling through the Great Recession. The downturn forced many RV manufacturers out of business. But while the quality of today’s RVs has significantly improved from 2007, Warrantech and other extended-service contract providers see plenty of potential risks to cover.
“The quality of RVs in general has improved, but there are more and more gadgets,” said Joe Suttera, Warrantech’s vice president of specialty products. “Now you’re covering 50-inch flat-screen TVs, full walk-in showers. From a warranty standpoint, there is certainly a lot more risk than there ever has been when it comes to these units.”
As one might expect, companies that provide extended-service contracts closely monitor their claims reports so that they can price their contracts accordingly. They also monitor feedback from RV dealers and periodically either update their extended-service contracts to cover new products or develop entirely new types of extended-service contracts for dealers to sell.
Extended-service contract companies offer a variety of educational programs and increasingly sophisticated electronic programs to expedite contract sales and claims processing.
But the time to make the initial pitch to consumers is in the F&I process when they’re purchasing their new or used RVs. That’s when dealers have an opportunity to educate their customers so that they know the differences between warranties and extended-service contracts.
Warrantech Automotive, an AmTrust Group Co.
Bedford, Texas
Product offering: Warrantech markets exclusionary and stated extended-service contracts using the CampersEdge brand name. The company covers motorhomes valued at up to $5000,000 and with up to 100,000 miles. It also covers towable units valued at up to $150,000 and that are up to 15 years old. The company also offers specialty contracts for RV technical assistance; 24/7 roadside assistance; windshield repairs; painting and interior; tire and wheel coverage; as well as key/remote replacement coverage. Warrantech also provides Towbusters coverage with 24-hour emergency towing, roadside assistance, lost key and lockout service, map routing assistance and theft as well as hit-and-run protection. The company also offers guaranteed asset protection (GAP) coverage.
March 2, 2017 06:38
Is Your Extended Service Plan Program Totally Supported?
Having an prolonged service plan program that will fit your small business model is crucial. Although it’s just one single piece of the problem. What about considering how your program is established? Without the right structure, it will not be as effective as it can be. Making certain your customers are usually taken care of will be as significant as the actual contents of a well-designed service contract as well as imperative to the actual good results of your organization.
At Warrantech, we frequently endeavor to improve the quality of service presented to almost all clients. We believe that top quality should be the building blocks of the stuff that people do in addition to everything that we represent. To us, customer service isn't just a group or perhaps process, it does not have a starting point or maybe ending point - it is part of the culture in every thing most people touch.
To bolster this process, Warrantech uses a separate Quality Assurance Department which reviews straight away to our Call Center Director, figuring out strengths and weaknesses, and also successfully handling the workforce to optimize service delivery. This section may serve as the building blocks for all our call center as they monitor all people every day and offer efficiency feedback on:
• Dependability
• Buyer connections
• Step-by-step adherence
• Statements adjudication
• System usage
• System certification
• Phone lengths
Additionally we be sure that customer support is readily obtainable. Consumers could file claims through a devoted toll-free mobile phone number, email, web chat or simply Claims360, our private online platform. We even support mail in addition to faxed statements also.
To control escalated customer issues and also issues, we've created a Presidential Team. This team, which is based within the call center, keeps a close relationship with each and every of our partners, the Account Manager(s) along with executive teams. Their particular task will be to work with a client in case of an escalation to ensure the very best services. This specific team obtains referrals through the call center associates, direct from our consumers, from executive escalations along with from all forms of social networking.
Any kind of customer who attempts to talk to a supervisor or possibly is contacting us for the same concern on a couple of occasion is straight away moved to the Presidential Team. A lot of these associates have sophisticated customer support training and also problem resolution and also have the full power in addition to authority to make the acceptable decision with your client to make certain together we are realizing client satisfaction. The Presidential Team member owns the service experience through completion in addition to paperwork every part of the decision.
The data that is certainly noted by the Presidential Team is actually researched monthly by call center management in addition to Warrantech executive management, as well as the training department to recognize process as well as procedure improvements needed to prevent future escalations. Supervisors make use of the feedback from the Presidential Team within their weekly get togethers as well as individual coaching sessions with their associates. This process makes a customer who is not just satisfied with the results of the transaction, however a consumer that walks away from the knowledge of
Warrantech Support Process At A Glance
Each customer contact is usually recorded and also stored
Appropriate staffing levels are usually maintained as well as based upon program, time, date and also SLAs
Unique phone numbers as well as websites are being used for every single consumer
IVR is employed to properly route calls based on program, contact type, etc.
IVR provides contact center participants with customer information just before transfer
OEM and/or partner calls can be instantly sent to the suitable business
Most customer contacts are generally watched immediately to ensure that all service-level agreements are usually satisfied
For more details about Warrantech feel free to visit: https://warrantech.wordpress.com/2017/02/11/is-your-extended-service-plan-program-fully-supported/
Posted March 2, 2017 06:38
February 15, 2017 05:36
With NIADA CPO and the Internet Creating a Level Playing Field, Independent Dealers’ Low Overhead Gives Them an Edge in the Used Car Market
Last year was one of the best retail sales years in car business history. And looking forward, sales in 2016 and beyond should benefit from the wave of full employment, low interest rates and low fuel prices to continue knocking down strong years. So where does the independent operator fit into this sales boom? How do owners in this segment of the market maximize their dealership value?
As new car franchises hit record numbers, the trend creates opportunities for independent sales organizations. But the question is: How can you capitalize on those opportunities when they are presented?
The Internet allows independent dealers, no matter how small, to compete on an even playing field with mega-franchises.
It is important to know that new car franchises look for one-to-one new-to-used sales. They’re currently running at about .02-to-one used-to-new, according to NADA data.
With used car prices at an all-time high, according to Edmunds.com, and new car dealers renewing their efforts to conquest used car customers, independent operators needs to be prepared for the future — not only to gain market share, but to keep what they have.
On the Internet, the small operation is the same size as the largest dealer. If an independent operator takes advantage of his opportunities while diminishing his competition’s added value, the independent dealership can compete very well with new vehicle showrooms.
When looking at how to best capture a percentage of sales generated from the big-box retailers, it is always wise to examine the advantages and disadvantages of your position versus local new car dealerships.
The biggest and most obvious difference is the facility. New car franchises are required by their OEMs to meet certain specifications in order to remain a franchisee.
Those cathedrals to car sales look great and attract customers, but in the final analysis add nothing to the value of the vehicle purchased. In addition to that zero value, the future and present state of the auto industry relies heavily on Internet sales, which makes these structures almost obsolete.
The costs of building and maintaining the facilities at most franchise lots are astronomical. And because the new car business is so competitive, the franchise stores’ profits from their new vehicle departments are minimal. That means the costs must be paid for through used car sales, the service department and increasingly higher profits in service contracts.
The overhead advantage works in favor of the independent used car dealer.
This is the best news for independent dealers. A small lot can be just as spectacular as the largest franchise on the web.
If the independent dealer can get his message out to customers, he has a chance to take one or two new vehicle customers and some used customers from a larger dealership.
One very important statistic to keep in mind is that a new car purchaser will consider a used vehicle instead 59 percent of the time – if the used vehicle is certified.
That creates an opportunity for a used car dealer to capture new car business.
It means if the new car market consists of 1,000 people per month in your area, 590 of them would look at a good certified pre-owned vehicle. Attracting 1 percent of those customers through the Internet translates to six vehicle sales a month.
The great change that the Internet has brought is a larger marketplace and a greater opportunity for used vehicle operations to cash in.
Unfortunately for new car franchises, the Internet really serves to drive profits down in the new vehicle world because of the competitive advantage it gives the customer.
A new vehicle at one lot is no different than the one down the street. Customers can locate and negotiate its purchase at multiple lots, pitting one franchise dealer against the other and putting the customer in a power position.
Not so with used vehicles. They are all different because of miles and vehicle condition, which makes location a much more important factor in the shopping experience.
That is why eBay retailers like NIADA president Frank Fuzy of Century Motors of South Florida can get customers from all over the country. The shopping those customers do is powered by the way a vehicle looks and the way it is described on the Internet.
If a vehicle is clean and in front-row-ready condition — featured with an appealing background, shown from all angles inside and out, badged with vehicle certification, and presented with a limited warranty and an explanation of the meaning of CPO — an independent with the smallest lot will be able to compete for a customer’s attention against the largest retailers.
Many small operations don’t put the effort into the photos they post on the Internet. They need to realize it is the equivalent of the showroom of the ’60s and ’70s and should be thought of as a display case.
Large dealer groups put a huge emphasis on their web display in their marketing efforts, making sure that the vehicles and the ambience of the background appeals to visiting customers.
Typically, social media is where customers first see a CPO program’s commitment to quality. If customers don’t feel the program meets a high standard, they will not feel safe doing business with that dealership.
Participating in CPO programs offered by organizations like NIADA announces your commitment to integrity and allows your website to display certified units, which shows your commitment to the customer and the industry.
But simply being a member of such a program is not enough. You need to broadcast what that membership means so customers become informed enough to tell the difference between an NIADA member and other car lots.
Another thing to keep in mind is new vehicle dealerships really have little advantage in inventory. They might carry more units than a smaller store, but independents should be able to be more responsive to the customer’s needs.
Everybody pays the same price for automobiles. Whether it’s purchased at the auction, traded in for a new vehicle or bought wholesale, a car is worth what it’s worth.
The real advantage for a dealer is the ability to have vehicles certified by a national source. Usually, that means a factory certification program administered by a manufacturer that has invested millions of dollars into creating a certified market. In doing so, it has created a niche in the customer base for people who have a prejudice toward buying a vehicle that is certified and will not look at anything else.
Certified vehicles now make up 65 percent of the used vehicles sold by franchise dealers. That means any car lot that does not have some certification program is only going to be a viable alternative to 35 percent of the used vehicle market.
So how do you certify your vehicles?
There are really three ways — through the factory, a dealer-branded program or a third-party program.
Factory dealerships are strongly encouraged to certify every vehicle through their OEM’s programs. While those are very good certifications, there is no proof customers put any more credibility in those programs than they assign to third-party or dealer-branded programs.
Customers know they want certified even though they may not be fully aware of what that means. What customers are really looking for is tangible evidence that the certification is meaningful and that there is a credible program behind it.
Factories have spent millions making customers aware of certification and the value of a certified vehicle. They have even tried to tie certifications to new vehicle franchises.
But that can work to an independent dealer’s advantage.
Factory programs are very specific as to what is certifiable, making their certified vehicles cost more in reconditioning than the average trade-in. And OEM programs get into distinguishing between vehicles with or without matching tires or if they have factory-installed floor mats, when customers really just care about the vehicles being mechanically sound.
A customer might not be buying a certified vehicle because the program has a limited warranty attached, but a limited warranty offers proof, from the customer’s point of view, that the certified vehicle should command a higher price.
Customers feel if the entity issuing the certification is also backing it with a limited warranty, that entity must believe in the certification process.
To be a credible certification program, there has to be reputable company paying the bills for customer repairs. A strong financial backer, along with coverage that protects customers from the fear of buying someone else’s problem, offers the peace of mind customers are looking for when they decide to purchase a certified vehicle.
Factory stores are forced or strongly encouraged to go with factory-backed certification programs. But recently, more and more progressive dealers like Huntington Honda in Long Island, N.Y., have elected to venture off with their own dealer-branded programs.
Groups like this have seen how the high costs of factory programs have limited their profits without providing a significant benefit over other nationally recognized programs.
The best known and most respected of the nationally recognized certification programs outside of the OEM brands is the NIADA Certified Pre-Owned Program.
Frank Fuzy credits the NIADA CPO program for giving him the credibility that has helped him sell vehicles on eBay.
Frank is the king of eBay sales – he sells more cars on eBay using the program than any other dealership. At the 2015 NIADA Convention and Expo, Fuzy said he hopes more stores don’t start using the NIADA CPO program because he competes nationally on the Internet and believes the program gives him an advantage he doesn’t want to give up.
Teaming with NIADA removes the biggest advantage a new car franchise has. Statistics show that 65 percent of all people buy a car where they get it repaired. So when your customers are using your warranty, you can direct them to the service department where you want them to have their repairs completed.
The NIADA CPO Program allows independents to bring customers into their service area, creating another profit center as the warranty pays for retail parts and labor.
The greatest equalizer in the history of the car business is the Internet. When automobiles are presented on the Internet with NIADA CPO certification and a limited warranty, they stand out from the fog and clutter of vehicles advertised on the social media outlets.
The dealer or independent operator who knows how to take advantage of the social media setting will be able to excel in the new environment we find ourselves in.
For example, when Fuzy advertises on the Internet that he certifies his vehicles with the NIADA CPO program, he gains an advantage in several ways.
First, his organization is saying it has an agreement with a national organization that was founded on ethical business practices. Plus the program is backed by Warrantech, a wholly owned subsidiary of AmTrust Financial, which is A+ rated and accredited by the Better Business Bureau.
That gives Fuzy’s customers peace of mind and an affordable program that provides rental vehicle benefits, towing and trip interruption coverage equal to or better than most megastores.
Using a program like NIADA’s allows an independent broker to take advantage of the cost of maintaining the lot he has as opposed to a new car franchise’s Taj Mahal.
Simultaneously, it allows for more gross profit and faster turn of inventory while alleviating the risk that a customer assumes.
Risk is what drives the used vehicle industry. The more risk a customer is willing to accept, the less the vehicle will cost. A 12-year-old vehicle with 100,000 miles is much less expensive to purchase than a new vehicle because of the risk in ownership.
That risk is mostly due to repair costs, which can be offset with a CPO program like the one offered by NIADA.
Many experts foresee a golden age in vehicle sales over the next 10 years, with predictions that average annual new vehicle sales will reach 17.5 million. Sales of that volume would make it the best sales period in the history of the auto industry.
Independent used vehicle operations that take the time to position themselves at the top of the pyramid and are prepared to take a portion of new car franchises’ business will find this a very profitable period.
By partnering with the right organizations and following through with what you promise, you can use the next 10 years to establish your dealership as a dominant force in the market.
For more details about Warrantech feel free to visit: https://warrantech.com/blog/february-2017/advantage-independent/
February 13, 2017 23:34
New Program Offers Certified Pre-Owned Cars With A Warranty
The following story and broadcast appeared on WSPA 7 News, a CBS affiliate in South Carolina. To view the video or read the original article, visit: http://wspa.com/2016/08/11/a-brake-for-used-car-buyers-new-program-offers-certified-per-owned-cars-with-a-warranty/
We get a lot of calls from viewers who bought a used car, “as is,” only to have it break down shortly after. When dealers won’t fix it, drivers are out of luck.
Now a new certified pre-owned program that’s spreading across the country has made it to the Upstate. There’s only one local dealership in that program so far because it’s so stringent. So we looked into the benefit for consumers, and whether there is a cost involved.
“Our program bases a lot on statistics. We know that if you do 125-point inspection on a car, the odds of it breaking down go down to minuscule,” said William Carr with AmTrust/Warrantech.
The warranty backers have teamed up with the National Independent Automobile Dealers Association to support the certification program.
In addition to that thorough inspection, each vehicle will also get a Carfax report, recall check and come with a warranty of at least 3 months/3,000 miles, or 10yr/100k powertrain.
“By giving the consumer a better product, in the long run we’ll sell more cars. So I think it’s a win win,” said Darla Booher, the owner of Deal Depot in Greer, Spartanburg and Duncan.
Her dealerships are the only active members right now. And as such, those lots will have to abide by a strict code of conduct.
“There is a very stringent standard that deals not just with the inspections but with the entire running of a car lot. Recently an upstate dealer had to exit the program because they couldn’t live up to the standards of the program,” said Carr.
There are about 80 dealerships across the country involved in this program, with about 5 new ones added each week. In fact one in Greenville is coming on board before the end of the summer.
Administrators say the program cost for inspections and the warranty are minimal. But of course it begged the question, is that passed along to consumers?
“No, there’s absolutely not additional cost to the consumer,” said Booher.
In fact, when it comes to the warranty, it’s illegal for a dealer to charge for that or it becomes a service contract.
One word of caution, as a consumer you want to make sure that there’s no bait and switch. If a car is advertised as certified, the dealers should not offer to take off the certification for a lower price. That’s illegal.
The NIADA Certified program performs quarterly inspections to make sure all dealers are continuously compliant.
February 13, 2017 04:39
Blogger
Keep Your Focus on the Future With a Certified Pre-Owned Program That Gives Independent Dealers an Edge With Millennial Car Buyers
An axiom of military history says that generals spend all their time planning to fight the last war, making them ill-prepared for the next war.
That same thing is happening with vehicle dealers today. They are planning for the future as they did with the past.
The past was about the baby boomers. The future belongs to the millennials, and they are very different shoppers.
Unlike their parents, millennials are ultra-frugal about their purchase of vehicles. Big box dealerships with their $20 million price tags that impressed their parents are a turn-off and an unneeded expense to this group.
The millennial generation likes to buy vehicles others have taken the depreciation on – but they also show a tendency toward the security provided by new car warranties.
That makes the millennial group perfect for the used car industry for a couple of reasons.
For one, used car dealers can couple vehicles that have depreciated with a remaining factory warranty. And they can certify pre-owned vehicles as a viable way to let millennial buyer enter into vehicle ownership.
Two factors make the millennial demographic predisposed to looking at the certified pre-owned option.
The first is their propensity to buy used cars, and with that, a higher rate of acceptance of CPO vehicles.
The second is their desire to be secure from the added expenses caused by mechanical breakdown. That makes a majority of millennial used vehicle purchasers open to a certified vehicle purchase.
Millennial buyers consider themselves much savvier buyers than their parents were because of their ability to use mobile devices. But they are not necessarily as educated on all aspects of CPO as their predecessors.
A study conducted this year by NADA Used Car Guide found 50 percent of 18- to 34-year-olds – millennials – said they were slightly or not at all familiar with CPO programs, a higher percentage than older generations.
They are, however, willing to learn, and they will add value to the product and increase their purchases of CPO vehicles when they are educated on those aspects.
Even though they are looking for the security provided by CPO, they are not sure about the parts of the certification process that provide that security. Millennials are much less likely to understand the value of the inspection aspect of the program, nor do they in general grasp the warranty portion.
But, like other buyers, when those components of the program are explained, millennials’ chances of purchasing a CPO unit rise. According to Autotrader’s 2015 CPO Study, 68 percent of used car shoppers said they would consider buying a CPO vehicle from the beginning, but once they learned the definition of what CPO really means, that number rose to 83 percent.
One of the most compelling aspects of marketing to the millennial generation is their willingness to learn and accept new ideas – that is, as long as the learning can be done via the Internet. That’s where millennials shops and learn about products.
Autotrader’s 2015 Automotive Buyer Influence Study found 74 percent of online shoppers say they use a smartphone or tablet to do their research – almost double the percentage from the previous year’s study – and millennial customer are at the forefront of that trend.
The Internet is the most likely place for a millennial to find out about certified pre-owned program, other than a personal visit to the dealership. The problem with customers finding out about the benefits of CPO after they’ve done their dealership research is, while it helps sell the vehicle, it doesn’t help convince customer s to visit your store.
Marketing to social media outlets with an educational message about CPO is the best way to reach this very valuable group of consumers. Millennials shoppers are much more likely to get their information from those sources – and to process and believe it – than the preceding generations.
Reaching millennials means getting those customers to your website. While they very much rely on in-person sales experience, their purchase process begins on their tablet or smartphone, long before they arrive at the dealership.
Carrying certified pre-owned vehicles that hit this group’s “cool factor” is the best way to reach the segment. Using search criteria millennials prefer increases the likelihood they will see you first.
Millennials may dream of Audi, Mercedes and BMW, but they are more likely to search for Honda, Chevrolet, Toyota and Ford, in that order. They also have a penchant for off-brand or discontinued vehicles like the Chrysler Pacifica, Dodge Magnum and Chevrolet TrailBlazer.
Factory certification programs only certify up to six years, so independent used car dealers who can find a reputable national certification program that will certify back to the mid-2000s and beyond, such as the NIADA Certified program, can attract customers who are looking for those special vehicles and still want the safety and reassurance provided by CPO inspections and warranties.
Millennial customers are going to spend more time on third-party and dealer websites than their older counterparts. People who spend the most time on those sites tend to be CPO shoppers – or they become CPO shoppers during the shopping experience.
The more time customers spend looking on the Internet, the more they are able to focus on specific models and equipment and the more time they have to learn the advantages of a particular dealer’s services, commitments and ethics, which can be broadcast on the dealers’ sites and are an integral part of a CPO program.
Millennial shoppers are looking for security in their vehicle purchase and ownership, and having a warranty can create that peace of mind for buyers who cannot afford a new vehicle or just want to spend as little as possible to avoid the depreciation attached to the purchase of a new vehicle.
CPO is more important to this frugal generation because they don’t want to save money by buying a used vehicle only to discover they have bought someone else’s problems. Using tools such as Carfax, AutoCheck or any of the vehicle history reports gives a sense of the vehicle’s past, and an inspection and a warranty provide additional peace of mind.
That has a real tangible value in the view of the millennial buyer. Even frugal car buyers see a real monetary value and willingly pay a premium for a certified vehicle. In fact, according to Autotrader’s 2014 Certified Pre-Owned Study, millennial CPO purchasers pay an average of $2,000 more for a vehicle that has been certified.
Finding the right vehicles for that group of buyers and a certification process that they can buy into – along with announcing on your website a commitment to the certification process and a great partnership to deliver the coverage to the customer – is a sure way to attract millennials’ business.
The most common reason consumers don’t purchase certified vehicles is simply a lack of awareness of CPO programs. Autotrader’s 2015 CPO Study showed that while consumers’ familiarity with CPO is steadily rising, only 49 percent of used car shoppers surveyed said they were familiar with certified pre-owned vehicles.
But when they learn about what’s involved in the CPO process, most consumers see the value in the inspection and warranty. The same Autotrader study found the peace of mind that comes with certification and warranty are the two top reasons cited by customers for buying CPO vehicles.
That means if you can get the millennial customers to your website, it becomes a matter of selling the customer on the right car – one that fills their needs but still leaves room for the protection that generation demands in the products they buy.
In other words, if you can get your message to where millennials shop, 90 percent of those shoppers are going to see value in the CPO inspection process and the warranty attached to it.
It is very apparent from market research that the places millennials prefer to get their information are online from third-party sites, and the dealer’s own website is the next-most popular place. Where they do not go for information are OEM sites – they prefer unbiased accounts to what they perceive as propaganda from the manufacturer.
Millennial customers are the future of the automotive industry, which should be music to the independent used car dealer’s ears. Those buyers are not going to behave as their parents did. Things that turn on their parents, such as the glitz and glamour of new car facilities and the prestige of new car ownership, are not the kinds of things likely to ensnare millennials.
While many auto dealers continue to approach their target marketing from a baby boomer mindset, those who tailor their marketing and operations toward the millennial generation will find their stores staying relevant to a huge vehicle buying demographic for many years.
So how do independent dealers move forward from yesterday’s playbook of success and prepare for this buying segment’s preferences?
They must first recognize this is a different that is going to behave in a different manner from its predecessors and must therefore be approached in a different manner.
Independents will have to find ways to reach millennials in their favorite social media spots. Dealers might have to stock vehicles to which today’s younger buyers assign a certain cachet of ownership.
Millennials are not willing to forgo the security of warranties and service contracts to get these older vehicles. That makes it important to find a national partner for the certification process that has the three items it takes to be a good finance product – claims, coverage and an overall drive toward customer service – and can reach back to the early 2000s to cover the vehicles the millennial generation values and can afford.
Aligning with a program like NIADA CPO that does all that allows independent used car dealers to attract millennial buyers to their vehicles and deals using their lower overhead.
Millennials want to be able to shop using smartphones and texting for communication until they are ready to meet face-to-face, but they also want a dealership experience and a demo ride when it is time to buy. Millennial buyers care most about the warranty and inspection and will pay a premium for it, and will become your loyal customer for life.
While others are still chasing the boomers, you can set up a program geared toward the future, selling to the millennial generation via the media they dwell in.
For more details about Warrantech feel free to visit: https://warrantech.com/blog/february-2017/don%E2%80%99t-look-back/
February 11, 2017 01:40
Is Your Extended Service Plan Program Fully Supported?
Having an extended service plan program that fits your business model is important. But it’s just one piece of the puzzle. Have you considered how your program is supported? Without the proper infrastructure, it might not be as effective as it could be. Making sure your customers are taken care of is as essential as the contents of a well-designed service contract and vital to the overall success of your business.
At Warrantech, we continuously strive to improve the quality of service provided to all customers. We believe that quality has to be the foundation of everything that we do and everything that we represent. To us, customer service is not just a team or a process, it does not have a starting point or an ending point – it is part of the culture in everything we touch.
To bolster this approach, Warrantech employs a dedicated Quality Assurance Department that reports directly to our Call Center Director, identifying strengths and weaknesses, and effectively managing the workforce to optimize service delivery. This department serves as the foundation for our call center as they monitor all personnel on a daily basis and provide performance feedback on:
• Professionalism
• Customer interaction
• Procedural adherence
• Claims adjudication
• System usage
• System documentation
• Call lengths
We also make sure that customer service is readily available. Customers can file claims through a dedicated toll-free phone number, email, web chat or Claims360, our proprietary online platform. We even support mail and faxed claims as well.
To handle escalated customer issues and complaints, we have created a Presidential Team. This team, which is located within the call center, maintains a close relationship with each of our partners, the Account Manager(s) and executive teams. Their task is to work with a client in the event of an escalation to ensure the best possible service. This team receives referrals from the call center associates, direct from our clients, from executive escalations and from all forms of social media.
Any customer who seeks to speak to a supervisor or is contacting us for the same issue on more than one occasion is immediately transferred to the Presidential Team. These associates are equipped with advanced customer service training and problem resolution and have the full power and authority to make the appropriate decision by working with the client to ensure that together we are achieving customer satisfaction. The Presidential Team member owns the service experience through completion and documents every aspect of the resolution.
The information that is recorded by the Presidential Team is reviewed monthly by call center management and Warrantech executive management, as well as the training department to identify process and procedure improvements needed to avoid future escalations. Supervisors use the feedback from the Presidential Team in their weekly meetings and individual coaching sessions with their associates. This approach creates a customer who is not only satisfied with the outcome of the transaction, but a customer who walks away from the experience with a positive outlook on the service contract, Warrantech and, most importantly, our clients.
|
Warrantech Support Process At A Glance
|
Visit warrantech.com or give us a call at 800.833.8801 to learn more about how we can support your business.
November 30, 2016 05:01
Let Warrantech’s Extensive Industry Expertise Take Your Business Further
There’s a lot to be said for experience. Having someone in your corner who has a greater understanding of what you are trying to accomplish can help you fully realize your goals and even uncover new opportunities that you never knew existed. That’s what we do best.
Warrantech is comprised of service contract / insurance industry veterans and is led by a management team whose members each average more than 23 years in the business. Our executives are thought-leaders who serve as industry board members and conference speakers, and possess numerous industry designations and certifications. This expertise translates into a comprehensive perspective with vast insight that enables us to uncover hidden growth opportunities and structure programs that offer a high-value proposition for our partners and their customers.
Our real-world experience also guides our team to help clients refine their sales strategies and create lucrative programs that build customer loyalty and enhance brand image. With a team of highly skilled underwriters, actuaries, legal/compliance professionals, marketing and management experts, Warrantech has the depth of knowledge to launch and administer your program successfully within your defined timelines.
Our experienced team is masterful at driving large, complicated projects, based on years of integrating, developing and managing a variety of well-positioned acquisitions and meaningful, large-scale client programs. We are able to design, develop and implement a program with minimal strain on your team, while working within any desired parameters you establish. We typically focus on:
• Optimization of price tiers and bands
• Ensuring all eligible products are covered
• Designing clear and concise customer terms and conditions
• Continuous development of marketing materials and sales tools
• Robust field and online training programs
• Aftermarket and renewal marketing activities
• Development of appropriate compensation and incentive programs
The Warrantech team has the expertise to ensure that you receive a carefully coordinated program that integrates all aspects of your business, including sales, service and marketing. In turn, this ensures a perfect fit for both your business and your customers.
Article Resource:-https://warrantech.com/blog/november-2016/let-warrantech%E2%80%99s-extensive-industry-expertise-take/
November 17, 2016 03:47
This really is just about the most frequently asked questions we receive along with one which causes a great deal of bafflement among buyers. The bottom line is, a warranty is undoubtedly an settlement to make just about any repairs as well as change defective parts within a particular time period after purchase - a 90-day warranty, for example. It's given by the maker or even dealer along with contained in the cost of the product. By comparison, a service contract/plan is usually a individual agreement meant to offer protection right after the manufacturer’s warranty ends.
Since a manufacturer’s warranty is actually good for a finite period, getting additional coverage for crucial purchases produces a wide range of sense. An extended service plan (or even vehicle service contract) is a well-liked choice between clients who want extended coverage on every little thing from electronics, vehicles, home appliances, boats, tools along with other items they truly value or even see as an important long-term expense. For instance, a cash-strapped student that can’t find the money to be without a laptop computer with regard to homework could well be smart to invest in a service program.
A service deal also offers further benefits which generally aren’t covered under the terms of the manufacturer’s warranty. If you obtained a brand new vehicle, odds are your warranty only addresses defects along with conditions that came about throughout the design as well as manufacturing process. With a service agreement, you can aquire extra coverage for important systems similar to the transmission and suspension, in addition to ancillary product protection which covers paint, dent, fabric along with auto glass repair.
In addition to product and purchase protection, service contracts offer you consumers convenience and also comfort. There have been various articles nowadays that all list this among the major reasons that people think that a service agreement can be worth the added expense. Should something go wrong along with your purchase, you’ll obtain immediate guidance. Moreover, a service contract can be purchased for just a fraction of what you'd normally purchase service repair or even, in worst-case cases, a completely new object.
Should you decide that you are looking at extended safety, the best guideline is to make sure that you very carefully examine the service contract along with the actual manufacturer's warranty. Likewise, contemplate: 1) the expense of the particular service contract, 2) the types of coverage it provides, 3) how long covered, and 4) the way you expect to use your buy. And when you have any issues regarding your service agreement as well as require assistance which has a certain kind of coverage, go ahead and contact us. We’ll be more than happy to assist.
Article Resource:-https://warrantech.wordpress.com/2016/09/21/what-is-the-difference-between-a-warranty-and-an-extended-service-plan/
Posted November 17, 2016 03:47
November 4, 2016 05:06
1. Monetary Pressure
If you feel that needing to purchase an fully new merchandise or even making high-priced repairs would likely deplete your money or maybe leave you with a mountain of personal debt, then you should definitely look into an extended service plan (ESP). It could possibly actually enhance the price of your product or service rather than being a economic burden in cases where something will go wrong. With an extended service plan, you’re primarily transferring risk towards the firm that sold it to you in addition to trading it in for satisfaction. Regardless of the product’s cost, having a scaled-down monthly ESP payment rather than an unusual, big repair bill is a intelligent expense that will help keep you from going broke.
2. Time Constraint
An additional key thought can be time. An extended service plan will help: 1) Take the guesswork out of hunting for a high quality repair company to fix your damaged merchandise on short notice. 2) Find a replacement product and have it sent to you promptly in the event that repair is just not an option. 3) Make available to you on-site maintenance in many instances.
In short, a good extended service plan is usually created to give you quick assistance. Should you be having difficulties with a item, you’ll have instant access to an authorized service expert, using a toll-free number, who can diagnose the situation along with support you get on with your day - without delay.
3. Product Trustworthiness
No matter how well designed an item is, nothing at all lasts permanently. Failure is inescapable. That’s why it’s always a good thought to log on and research the prospective faults of the specific solution you want to buy. Look into the long-term reliability of that manufacturer to figure out it's stability as well as what type of coverage could be most powerful to you.
Also, evaluate the implications of being without your chosen consumer product - whether it’s a fridge, television, dishwashing machine, washer/dryer as well as other sturdy good. If you think that being without this particular product would be a problem to you personally, then an extended service plan functions as a great complement.
4. Mishaps Arise
Gadgets are getting to be much more mobile through the years, meaning they are more susceptible to accidental damage from regular everyday use. Maintain your habits in addition to actions in mind about the way you employ items like these. In case you travel a lot or perhaps are constantly on the go, then your mobile phones could possibly be at greater risk. And if you depend upon a smartphone, computer tablet or perhaps laptop for essential things just like work or perhaps college responsibilities, consider how complicated it could be if you didn’t have coverage and had to invest a lengthy period of time with out them.
5. Long-Term Expenditure
It is human instinct that people would treat a car we intend to buy along with drive for a long period of time differently than we might a car with a short-term rental. If it belongs to us we’re more likely to keep it cleaner, acquire higher-grade gasoline as well as go out of our way to avoid bad roads. Precisely the same can be said of any item. If you view something as a long-term investment more than simply a fleeting buy, you’ll wish to maintain it managing at its absolute best as long as feasible.
An extended service plan is a must-have in situations similar to this and could be ideal for items that rely on steadfast service. As always, make sure to read the coverage terms of your extended service plan to make sure that it meets your needs, and make sure that it carries a trustworthy repair plan to help in keeping your most crucial appliances working longer and to the best of their expertise.
Article Resource:-https://warrantech.wordpress.com/2016/04/14/why-should-you-consider-an-extended-service-plan/
Posted November 4, 2016 05:06
November 4, 2016 04:59
Warrantech is actually pretty pleased to announce we've made a variety of updates in our service network, starting with a fresh field service network management team. Efficient immediately, David Velasquez will provide improved partnering as well as immediate support as the West Regional Manager, in conjunction with Brian Schlepp, Central Regional Manager, in addition to Brian Weaver, East Regional Manager.
We're also serious about the particular enactment of applications from ServicePower, who can provide mobile workforce management tools to push productivity in addition to streamline exactly how Warrantech dispatches service centers along with schedules meetings with clients.
“One of the many features of ServicePower certainly is the openness it offers our customer service staff with our area, enabling all of us to provide real-time revisions for the status of fixes,” said Ricardo Pina, Warrantech Customer Service Manager. “I am confident that ServicePower will help reduce service turn-around times and minimize escalations and also problems.”
ServicePower, that goes live on August 10, allows people to select calendar times and dates, in addition to instantly dispatch service. This program will also report any time a service order has not been carried out within 3 days, after which a servicer will get a reminder along with the customer will be provided with an update in the process.
Additional help characteristics being carried out to present improved customer/servicer follow-up include:
• Application designed for direct deposit (ACH) for payment of repairs and replacement.
• Finished claims will likely be processed for payment within 7 working days.
• Warrantech will take care of trip/service calls for non-validated repairs (i.e., No Problem Found).
• Setup of the Parts Order guarantee: Parts Orders through Warrantech’s parts portal are assured for 3 months. Should the part breaks down within just 3 months, Warrantech will pay servicer for 2nd service call.
• The present market environment determines the opportunity to encourage elevated repair chances; we may, as needed, opt to make use of a non-OEM part(s) to accomplish the service event.
• Much better call center staffing as well as training in promoting a world-class experience.
• Impending implementation of the following ServicePower solutions: ServiceDispatch, ServiceStats and ServiceOutsourcing
Warrantech is obviously seeking methods to improve our business model to ensure that clients and service vendors are made a top priority and also granted preferential treatment. We've been confident that these kinds of brand-new positive alterations do just that as well as will certainly continue on to help develop better partnerships in addition to extended expansion.
Article Resource:-https://warrantech.wordpress.com/2016/08/10/warrantech-announces-new-service-network-updates/
Posted November 4, 2016 04:59
AmTrust Financial Services, a multinational provider of insurance and warranty services and parent company of NIADA Certified Pre-Owned program administrator Warrantech, has joined with NIADA as a Diamond-level National Corporate Partner.
Operating through its partners and subsidiaries – Warrantech, AmTrust Specialty Risk, Warranty Solutions and NIADA Certified Pre-Owned – AmTrust offers dealerships unique, customized solutions designed to fit their specific business needs.
The AmTrust team includes automotive industry experts and vehicle service contract/insurance industry veterans, expertise that translates to a comprehensive perspective with insight that enables the company to uncover hidden growth opportunities and structure programs that offer a high-value proposition for dealers and their customers.
AmTrust’s real-world expertise guides its team of trainers to help dealers refine sales strategies and build customer loyalty and enhance brand image.
The company’s vertical integration allows it to provide any combination of program management solutions, from turnkey operations with full underwriting, marketing, dealer training, sales support and administration services to a la carte services and hybrid solutions.
Last month, AmTrust announced it has been named to the prestigious Fortune 500 list for the first time. The list, which includes the largest companies in the U.S. by total revenue, is recognition of AmTrust’s financial strength and stability. The company’s revenue rose 18 percent in 2016, reaching $5.45 billion.
AmTrust’s partnership with NIADA gives dealers access to the only nationally recognized independent CPO program, which lets your customers know your business and the vehicles you are selling are held to a higher standard.