Warranty…For 3 cents a mile…

Warranty, just 3 cents a mile…

Let’s face it, there is no other business on the planet where customers are exposed to astronomical mechanical and repair costs. For instance, and new engine today can run you $40-45,000, and only 10 years ago that same engine was only $20-25,000. The costs of maintaining a heavy truck with today’s technology are not going down!

How to sell an extended warranty: If you are serving your customer up retail pricing for a warranty…

YOU ARE DOING IT WRONG! 

Try This: Every driver has a per mile maintenance account, and if they don’t they won’t be driving for long. When presenting and closing an extended service contract to your client, add the cost to their maintenance account…It’s just pennies a mile.

You: ” Mr. Customer, if you were to have a catastrophic engine failure, do you have the $45,000 set aside to replace the engine”…
Customer: Hell No!   ( You know this to be accurate because they just scraped everything they could to buy the truck in the first place)
You: “If I told you that we could add a 2 year, 240,000 mile warranty that covers the Engine, Trans, Rears and the entire After Treatment system for 3 cents a mile on average…doesn’t that sound like a responsible decision?

  • cost based on average miles, utilizing a  Truck Master Warranty 2yr/240,000 Engine, Tran,Rear with entire After Treatment system

Truck Master launches heavy truck Gap Insurance

Truck Master launches heavy truck Gap Insurance

 

When you buy, or lease a new or used truck, the vehicle starts to depreciate the moment it leaves the lot. In fact, most trucks lose 20 percent of their value within one year. Standard heavy truck insurance policies cover the depreciated value; in other words, insurance pays the current market value of the vehicle. If you finance or lease the purchase of a new or used truck and only put down a small deposit down, the amount of the loan may exceed the market value of the vehicle in its early years of ownership. Gap insurance is available to cover the “gap” between what a vehicle is worth and what you owe on it.

 

It’s a good idea to consider buying gap insurance for your new car or truck purchase if you:

 

  • Made less than a 20 percent down payment.
  • Financed/Leased for 60 months or longer.
  • Purchased a vehicle that depreciates faster than the average.
  • Rolled over negative equity from an old truck loan into the new loan.

 

“For over a year we worked on a Gap Insurance program that was custom built specifically for the heavy truck market.” Says Truck Master Warranty CEO Jeff Dobish.

“As you have read in various editions of Successful Dealer, used truck prices continue to drop, while in fact the buyers amount owed declines at a much slower rate…exposing your customers to a potential negative equity risk”. Explains Dobish

“Imagine making monthly payments on a truck that you no longer own”

Truck Master Gap is available in 47 states, it is available on both new and pre-owned purchases or leases and is perfect for dealerships that promote leasing with a $1. Buyout. Visit www.truckmasterplus.com for more information.

Truck Master Warranty launches Canada

Since 2013, Truck Master Warranty has been servicing quality heavy truck dealership in the United States with its “Certified Pre-Owned” CPO90 program, and its industry leading 1,2,3, and 4-year extended service contracts.

“We are thrilled to be taking our quality programs and reputable brand north to Canada, it has been in the making for over a year.”  States Jeff Dobish, Truck Master Warranty CEO.

“In Canada, if you are marketing a Limited Warranty, the dealer must post a bond of between $100,000 and $500,000, to protect the customer, so having a fully insured program delivers great peace of mind for both the dealer and the customer” Dobish says.

Truck Master Warranty recently opened their Canadian headquarters in Vancouver, B.C. and is quickly registering quality heavy truck dealerships, leasing and finance companies all over the country.

For more information, please visit www.truckmasterplus.ca

 

Warranty Cost vs. Warranty Value

“In the warranty world, dealers often focus so much on the cost, not the value. Cost can sometimes be deceiving, until you really understand what you are getting and how you are being serviced…”  Jeff Dobish, President -Truck Master Warranty

 

It wasn’t that long ago that Chinese drywall was going to change the face of home building, saving builders and home owners thousands on the cost of a new home or building. It was cheaper, easier to produce, and was perceived as a valuable resource to save some money. How did that work out?

The same scenario can be said of extended service contacts and how cost can be very deceiving in regards to the ultimate true value.

The first value proposition to explore is if the service contract is insured or not. This is one of the largest potential exposures to a dealership and their clients. There are two different warranties on the market today, one is a “limited warranty”, which ultimately places the responsibility on the selling dealer. An “insured warranty” is guaranteed by a third party insurance company that takes the risk of losses. It also has built in arbitration in the event of a dispute regarding a claim. An “insured warranty” provides the ultimate security and value compared to a “limited warranty”.

Taking a look at the amount of covered components, standard features and covered parts is where “limited warranties” build in the “gotcha” factor. The “gotcha” happens quite a bit when there is a limited number of covered parts, combined with no progressive damage coverage. So if a non-covered part fails and causes a covered part to fail, “gotcha”. It goes without saying that the more covered parts a warranty covers, more value lies with that warranty.

“Nobody knows better than Truck Master the deficiencies of using a third party administrator when it comes to processing claims”, states Joe Gelfo, Vice President of Specialty Administration Services. “When we first started in 2013, it was a hopeless felling not being fully engaged regarding claims, the claim process and eventually the speed in which gets trucks back on the road” says Gelfo.

“We started our own Administration company for one reason…and that was to deliver World Class customer claim service. We can now be fully hands on and have completed big dollar claims in less than 20 minutes. We are fully insured, licensed and registered in 48 states which is a statement no other heavy truck specific warranty provider can make…adding yet additional value when choosing a solid company”. “It’s our People, Our Process and our Product that truly sets us apart from the crowd”,

 

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