The National Independent Automobile Dealers Association announced last week that it has chosen an administrator for its all-new NIADA Certified Pre-Owned Vehicle Program.
Tapped for the role was Warrantech, an AmTrust Financial Services company.
Warrantech, a provider of extended service contracts for the automotive industry will “administer the plan, handle and address all post-sale customer needs, customize dealer and consumer marketing materials and work closely with NIADA’s state affiliate network to launch the program nationwide in May 2012,” the organization explained.
“Warrantech is honored to have been selected by the 66-year-old NIADA as their CPO Program Administrator. We applaud the time honored tradition of excellence that NIADA member dealers observe, including their adherence to a strict code of ethics,” said Sean Stapleton, chief executive officer of Warrantech. “We feel this commitment mirrors Warrantech’s dedication to excellence and drive to provide superior products and continued quality customer service.”
Explaining the reasoning behind the partnership, officials noted it allows for “a perfect mix of NIADA dealers committed to superior quality and service and an industry leading service contract company that can give them the products & support their customers are looking for.”
Commenting on the news, NIADA chief executive officer Mike Linn said, “Our research is telling us that 65 percent of consumers begin their vehicle search looking for a certified pre-owned vehicle and that number is growing.
“NIADA is committed to helping our members give customers what they are looking for and offer a top-notch buying experience for car buyers in their communities. We see the NIADA CPO Vehicle Program as a primary way for NIADA members to further separate themselves from their competitors and give customers a better vehicle with additional peace of mind after the sale,” he continued.
Steve Jordan, NIADA chief operating officer chimed in, noting: “In re-tooling the NIADA CPO Program, we recognized independent dealer business models vary widely and that we had to offer additional CPO options to specifically meet the operational demands of our dealers.
“Warrantech’s successful track record with independent auto dealers, varying product offerings, world-class claims operation, nationwide sales footprint and long term commitment to support the success of our dealer members made the partnership decision easy to make,” he added.
Highlighting the specifics of the program, offiicals contend that with three plans under the NIADA CPO Program, dealers will be able to select the option that is right for their market and their customer base.
These options include:
1. Three-month/3,000 miles limited warranty — Includes 36 months/36,000 miles engine and AC component coverage
2. Six-month/6,000 miles limited warranty — Includes 36 months/36,000 miles engine and AC component coverage
3. 12-month/12,000 miles limited warranty
These NIADA CPO limited warranty options will include coverage of: engine, air conditioner, turbo or supercharger, automatic and manual transmission, transfer case, drive axle, steering components, select electrical components and seals and gaskets, officials explained.
Furthermore, the NIADA CPO limited warranty options can be supplemented by adding the NIADA Total Care or the NIADA Total Care Plus coverage that includes: front and rear suspension, brakes, fuel system, cooling system and additional electrical components.
“In addition to this important coverage, NIADA and Warrantech will provide dealers with comprehensive sales training on how to utilize the CPO program to sell more vehicles and extended service contracts, as well as marketing support which will include in-store signage and promotional materials,” officials explained.
Warrantech senior vice president Mike Burgholzer had this to say about the new partnership and program: “By providing both administration and underwriting, the all-new NIADA CPO Program will help dealers become more profitable and grow their businesses by providing significant incremental revenue through the sale of additional vehicles and extended service contracts.
“Additionally, this new plan will help dealers continue to build customer loyalty by insuring the ongoing reliability of their purchases. It’s a win-win for both the dealer and the consumer,” he concluded.