After a six-month trial period with 40 dealers, Warranty Direct has launched National Dealer Services (NDS) focussing initially on the ‘Star Certified’ used car scheme, which has been developed to allow UK dealers to work within the terms of the forthcoming EU Sale Of Goods Directive (1999/44/EC).
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The Star brand also extends into dealership warranty sales and various ‘customer care’ packages.
“With the burden of proof now placed on the dealer for the first six months after purchase, the whole nature of forecourt warranties and pre-delivery mechanical inspections is set to change,” said National Dealer Services managing director Derek Worsley.
According to the 2002 BCA Auctions Used Car Report, dealers still control 58% of 6-8 years old vehicle sales and 79.6% of models aged between 3-5 years.
“Talk of a mass exodus from the older end of the market is ridiculous,” said Worsley. “The fact is the consumer wants to buy from dealers, and, handled correctly, the obligation to prove the mechanical worthiness of the vehicle being sold should be an opportunity dealers look to capitalise upon not shun. The ruling actually gives dealers a more solid sales proposition if marketed properly.”
Star Certified dealers will provide UK used car buyers with a comprehensive pre-sale check, 12-month warranty and a minimum 14-Day exchange policy plus cover for MOT [an annual vehicle inspection compulsory in the UK], tyre, battery, road rage, car jacking, lost key, accident management, and roadside assistance from £129.
Vehicles up to 10 years old and 120,000 miles qualify for the scheme, and cars already offered with at least one year’s manufacturer warranty remaining will still be sold with a cover package (MOT, etc). All warranties will also include claimed unique cover against wear and tear and consequential loss.
Supported by a national advertising and marketing campaign, Star Certified has already had a “positive impact on the bottom line” of UK used car dealers, according to Worsley.
“Star gives them the ability to package a confidence boosting proposition to the consumer, and, because we’re able to bundle a range of costs like provenance checks, we’re actually saving dealers money and helping them meet trading standard conditions.”
Optional policies, and revenue streams, available under the scheme include cover for in-car entertainment, satellite navigation and game consoles plus an upgraded roadside assistance package.
The National Dealer Services ‘blueprint’ is based on the innovative US-based INDS (Interstate National Dealer Services) founded by Chester Luby in 1980.
