Why Self-Funded Warranties Are Changing the Automotive Aftersales Game

Staff
By Staff
5 Min Read

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For dealerships, franchises, and used car supermarkets, balancing profitability with excellent customer service is no small feat. In a sector driven by trust and retention, self-funded warranties have emerged as a powerful alternative to traditional insured options. Warranty Administration Services, a leader in this space for over 40 years, delivers tailored warranty solutions that empower dealerships to take control, boost profitability, and build stronger customer relationships.

What is a Self-Funded Warranty?
Unlike traditional insured warranties, where a third-party insurance provider control claims and retains unclaimed funds. The dealership holds the warranty fund, ensuring that any unused funds are retained as profit. This model also gives dealerships the flexibility to make decisions about claims, customise coverage to meet brand standards, and provide customers with a seamless and tailored experience.

With Warranty Administration Services’ expertise, dealerships can operate a self-funded warranty confidently, leveraging tools, training, and support to maximise the benefits while minimising the administrative burden.

Why Choose a Self-Funded Warranty?

There are various benefits to a self-funded warranty scheme, such as:

1. Boost Your Bottom Line 
Self-funded warranties keep 100% of those funds within the dealership. In 2023 alone, Warranty Administration Services returned £2.9 million in expired warranty profit to its dealer partners, demonstrating the revenue potential of this model.

2. Build Customer Loyalty 
Warranty Administration Services’ self-funded warranties encourage customers to return to the dealership for repairs and servicing, increasing long-term retention and aftersales revenue. For example, the Hendy Group, a long-standing partner of Warranty Administration Services, has seen measurable improvements in customer loyalty and workshop footfall over their 30-year collaboration.

3. Tailored Aftersales Solutions 
Every dealership is unique, which is why Warranty Administration Services designs bespoke warranty programmes that fit your specific needs. Options like UK rescue and recovery and flexible claims handling ensure your warranty offerings enhance your brand and meet customer expectations.

4. Efficient Claims Management 
Warranty Administration Services’ claims team handles nearly 19,000 claims annually with speed and professionalism, allowing dealerships to rely on their experienced support to ensure claims are processed quickly, giving customers confidence and keeping operations running smoothly.

Some dealerships hesitate to adopt self-funded warranties due to concerns about risk or complexity. However, Warranty Administration Services provides extensive support to mitigate these challenges. From training your team to offering expert claims advice, they ensure that you have the tools and knowledge to run a self-funded programme effectively.

Additionally, the WarrantyLogix portal makes it easy to switch providers, track claims, manage funds, and ensure compliance. This comprehensive approach minimises risks and maximises returns.

Real Results, from Industry Leaders

Dealerships across the UK trust Warranty Administration Services to deliver results. With over three decades of partnership, the Hendy Group has transformed its aftersales strategy, benefiting from significant profit retention and improved customer engagement.  In addition, with Warranty Administration Services’ support, Islington Motor Group has successfully used its warranty programme to encourage customers back to the workshop, improving retention rates and delivering excellent aftersales care.

With four decades of experience, Warranty Administration Services remains a trusted partner for leading AM100 groups, franchises, and independent dealers. Their comprehensive solutions combine industry expertise with cutting-edge technology, such as full system integration and flexible claims handling, to help your dealership grow. By managing an extensive number of warranties annually, we have established ourselves as the go-to provider for self-funded warranty solutions.

Warranty Administration Services makes it possible for dealerships to turn their warranty programmes into a powerful profit centre while delivering the premium service customers expect. With a bespoke self-funded warranty programme, you’ll gain full control over claims decisions, improve operational efficiency, and retain more of your hard-earned profits.

Contact Warranty Administration Services today to learn how we can tailor a solution for your business.
 

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