60 days FREE warranty
November 18th, 2009 by Richard Aucock
CAR dealers are being incentivised to upsell profit-making GAP and RTI warranty products by MB&G.
The deal allows car dealers to give away two months’ cover to customers for FREE.
After the gratis period, MB&G contacts the customer on behalf of the dealer, to upsell the 36-month policy at a pre-agreed price.
Operations director Kevin Pearce said this provided the car dealer with a commission.
‘This creates another customer-upselling opportunity in the event that they didn’t buy GAP or RTI cover from the dealer in the first place.’
It also helps focus car dealers’ attention on the profit-making potential of such warranty products.
‘Sales staff don’t always understand the value that warranty products can add to dealer profitability,’ said Pearce.
‘They’re so focused on securing the sale and hitting their own targets, it’s easy for them to lose sight of the bigger picture.’
This deal helps out some of the half-million owners suffering vehicle write-offs. Guaranteed Asset Protection and Return To Invoice warranties ensure that written-off cars bought on finance do not end up costing their owners money.
The warranties cover the difference between what insurance companies pay out, and the amount left owning to the finance provider.