Lumley Insurance Consultants has addressed dealers' fears over the growth in three-year new car warranties, which have eroded margins on used car cover, by launching a top-up product.
FlexeCover allows dealers and buyers to top up any remaining period of the manufacturer's warranty to the minimum 12-month cover provided for used vehicles.
David Bray, Lumley key accounts manager, said: “Forthcoming EU legislation on Consumer Guarantees is likely to mean dealers will want to provide at least a minimum of one-year cover on all used cars and FlexeCover has been introduced to provide the most cost-effective way to achieve this. “FlexeCover can also be used as a powerful retention tool because the warranty period can be matched to the finance term or the anticipated length of ownership.”
The scheme operates though Lumley Dealer Networking, an online system that cuts dealers' admin costs. It also enables users to provide customers with instant insurance cover.