DealersEdge Professional Forums

Looking to get some input from dealers selling Road Hazard Warranties for tires sold through the service department. My question would be who do you use for it and does it work? Feedback greatly appreciated.

We created our own years ago.

Each month I run a report of quantity of tire sold (times) $5 = the amount that goes into account 300T

Tire repairs free for 2 years

Free replacement (tire only!) for the 1st year & 50% the 2nd year. (must have 50% of the tread remaining on the tire).

(NOTE: my local tire store covers the above also IF we buy the tires from them)

Remaining balance at the end of the year goes towards another expense account of my choice.

It works well in selling the tires: "each tire we sell comes with a FREE (company name) road hazard warranty at no extra cost"

we use one from US Auto Force, It costs us $140 per month, and give it free to the customer. It only can be used on tires that we purchase from US Auto Force on or off the GM program. It's a 3 year prorated program that covers 100% of the first 25%, and up to $150 per tire, plus $20 per repair. Very easy to file claims and pretty quick with there reimbursement's. This small investment that we absorb each month defiantly helps us sell more tires, and other services.

For aftermarket tires at one of my stores, we charge $1 per tire for Road Hazard as a fee that goes to shop supplies. Basically builds up a pool and whenever we need to warranty one, they write the line to internal service and that pays for them. We bill it at cost.

For the Dealer Tire, it's included.

We use Sonsio it seems to be a bit pricey, but takes care of the tire replacement; customer pays labor. We have had a lot of customers tell us they're glad they had it. It is one of GM's preferred brands.

Denise Trimble wrote:We use Sonsio it seems to be a bit pricey, but takes care of the tire replacement; customer pays labor. We have had a lot of customers tell us they're glad they had it. It is one of GM's preferred brands.

I thought Sonsio went out of business? Could never get them to pay a claim!

[quote=I thought Sonsio went out of business? Could never get them to pay a claim![/quote]

Three dealerships I know of still use them. We just got our new stickers and no problems with claims so far.