Outside warranty processors

[warranty_goddess]

I've been wondering what the 'taboo' is with outside warranty processors. I had dreams of working from home - made a nice professional package to sell my services - yet was shot down by everyone I approached with no actual reason given. I always a "we'll think about it" with no return call - when I call back they say the factory is against it. I scoured P&P mannuals and none of them say anything in regaurds to outside processors being a bad thing. They are pretty much written as though dealers should process in house, but don't say not to. How do you guys feel about them? Has anyone had a bad experince with one? Just looking for some insight.

[robc]

This (not unlike a lot of services to auto dealers) is near impossible to "sell" as a change of doing business. I've been around processing companys and looking at warranty from the outside for over a decade now and nearly every case I see is warranty administrator walks out and dealership needs help. Once they are on, some enjoy the service and stay - others don't.

The most successful marketing is by referrals - word of mouth. Dealership has a problem, they call around for help, and are somehow put in touch with you. For instance, we don't do claims processing, but because of who we are and the warranty publications a get a couple of calls from dealers and managers a month. But I can almost guarantee that if I would have called these same dealers a month earlier they wouldn't have had any interest in talking about outside warranty processing.

Just email me if you have questions.

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** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

[warranty_goddess]

That makes sense. Thanks for the fast reply too.

[bam]

One of the reasons the factories don't like dealerships using outside warranty processors is that they are usually set up contractually to be paid a percent of the dollars they submit for. In the minds of the factories, that makes them too aggressive in terms of filing claims that maybe shouldn't be filed.