DealersEdge Professional Forums

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.

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.

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

That makes sense. Thanks for the fast reply too.

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.