I have several dealers who self insure their warranties. Since in most cases you are advancing the funds to the warranty company, why not advance the funds to yourself. It allows the deferral of income, you set up the terms and conditions, you control the money and you should you have a customer who falls outside the parameters of the warranty for some reason but you decide to cover them, you can. Any of the national carriers should be able to give you information on their self insured programs.
warranties cannot be sold. call Larry Roseberry 402-687-6865, he has a strong program for waranties convertable to service contracts.
Talked to Jeff today from ASC. He did a great job of selling his companies services. I think that is where I am going to go. Thanks for all the input.
I agree. You always want to make sure your service contract provider is dealer administrator not dealer obligor. And that they are insured. Also, you need to ask what the limitations are for that particular warranty. So many times, a dealer is selling a 3/3 $99 powertrain from other companies and are not told by their agent what the limitations are on that particular service contract. For a little more you can have a 3/3 powertrain that covers up to the value of vehicle without the limitations or used refurbished parts. I did finance for 14 years before i became an agent. I can honestly say , i am one of the few that will give you an honest answer on exactly whats covered under the service contracts you sign up for. And all you have to do is look on the back of the contract not the brochures. It will tell you exactly whats covered and whether it has limitations or covers up to the value of the vehicle. With new parts or used refurbished. We have both Franchise and Independant services contracts.