I am used car dealer and i want to give warranty on my cars?

Question

Hi, I am small used car dealer and i began selling used cars like 2 yrs ago, but i heard average dealer sells about 30 cars a month. I want to sell at least 4 cars a month. But if i can give warranty customer will buy from me otherwise i'll be only selling about 10 cars a year. Can someone tell me how can i give warranty to my customer. Please help me thank you

Answer 1

Either you have to buy an extended warranty for the customer as part of the deal, or you can warranty the car yourself! If you warranty the car you will be the one paying for any repairs. If you buy a warranty from another company, you will be paying that cost out of your profit!

What I did, when I was selling retail, was offer a limited (30 day/ 1000 miles power-train only) warranty with the car, and then offer the customer a chance to purchase an additional extended warranty that was from another company!

I built a reserve amount into every deal for future warranty costs! Usually I would figure that $200 of my profit would be spent on average in warranty repairs. I required that all repairs be done by my shop, if the customer had a repair done elsewhere, no matter what the reason, I was not going to pay for that repair! This gave me some control over the repairs and the cost!

When I had a customer that wanted to beat me down on the price, the warranty was always taken away. If I had a car listed at $3500. and they wanted to pay $2950, I would tell than that the only way I could make such a deal was to sell the car to them AS-IS. Most times they would agree!

If you are selling older cheaper cars, you can end up losing a lot of money on warranty repairs. Be sure that the cars you are selling are in good shape before you warranty them yourself!

Answer 2

Their is a dealer in my area that offers a 90 day warranty on all of his cars that covers everything. He charges 100.00 dollars for the fix no matter the cost in that 90 day period. He also has a 30 day no hassle return on all cars incase you dont like it, you can bring it back. Of coarse honesty, and not selling the car for over private party value is a plus also. You will also sell more if you don't require alot down. Lots of people dont have the money, but are reliable in payments. I know the money down in most used car cases is to cover the auction price that you payed incase of theft, or nonpayment, or to break even right away to buy more, but that will hinder your sales.

Answer 3

use an aftermarket warranty company like wynn's, you purchase the warranty cheaper if you are a dealer, and if you service cars too you can get paid by the warranty company to do so

Answer 4

Ask a local dealer with a shingle who they use. Get the reps number. He will wholesale you warranties and you can add them to your cars. Very good idea, it should help to sell you more cars. We used to use Universal and they were very good.

https://www.universalwarranty.com/mic/uwc/us/jsp/UniversalHomePage.jsp

Answer 5

Just look around at the different companies that offer products specifically for dealers. http://www.apcwarranties.com is one that I can think off hand. Good luck!