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New aftersales 'safety net' finance product launched in April

A motor service plan warranty “hybrid” product is to be launched by The Warranty Group at the beginning of April.

Called Service Plus, it is designed to provide a single pay-monthly aftersales 'safety net' that meets the needs of most dealerships and motorists.

The product is believed to be the first of its kind offered in the UK and Europe, and probably worldwide.

Chris Benham, business development director at The Warranty Group, said that a product of this type had significant advantages.

"Service Plus provides a fixed monthly cost, single purchase solution to protecting motorists from the possibility of many unexpected car costs. It is easy to buy, to operate and administer, and to make claims. 

"If you are dealer selling a car or a customer buying one, it means that you can, just by spending a few moments completing your details, access a product that provides a comprehensive safety net. It especially makes sense if it is designed to run for the length of the used car PCPs that are becoming increasingly popular. A three-year Service Plus will cover you for the length of the time you have the car, for example."

Benham said, for dealers and manufacturers, Service Plus can increase retention back into the dealership for future servicing with increased opportunities for upsell.

"One of the times when customers are most likely to want to consider a service plan or warranty product is when they enter a dealership for regular servicing or repairs. 

"We envisage an existing service customer being offered Service Plus as they come to collect their car. Typically, their warranty will have expired and they will have had to pay for their service in one hit.

"There will often be very good reasons for keeping service plans and warranties as separate products, mainly in order to maintain a high level of flexibility in each.

"However, it also makes sense in some instances to be able to offer them together as a hybrid product that provides a high level of support for the customer in one package. This is Service Plus."

Service Plus was formulated around a non-insured structure which meant sales could be undertaken by dealers without requirements for regulatory supervision.

"Ensuring that customers are treated fairly is essential and we will provide training and support to ensure that this takes place."

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