GWC Warranty finalized a relationship on Monday that might make its F&I solutions for used vehicles more appealing for dealership customers, especially ones who prefer at-home or at-work vehicle repairs.
GWC Warranty selected Wrench as a new preferred facility repair partner. Wrench is a mobile mechanic services provider that currently services 55 metropolitan markets and is rapidly expanding throughout the U.S.
Dealerships who are partnered with GWC Warranty can now offer their customers the added convenience of mobile service repairs at no additional cost every time they sell a GWC Warranty vehicle protection plan.
“Our world has changed in the last two years, and many people want or need to have vehicle repairs completed at home or work,” GWC Warranty vice president of sales operations Jeremy Beck said in a news release.
“Wrench provides our customers with a flexible, convenient option for service repair. In addition, Wrench files all claims directly with us, so vehicle owners don’t have to worry about approvals or invoices,” Beck continued.
To find a repair facility, vehicle owners with a GWC Warranty vehicle service contract can call or enter their ZIP code online to see a list of all preferred repair facilities in their area.
If Wrench services the market, an appointment can be scheduled with an ASE-certified mobile mechanic. Vehicles can be serviced at home, at work or other safe location.
When a Wrench ASE-certified mechanic meets a GWC Warranty customer on location, the mechanic can diagnose the vehicle and reach out to GWC Warranty to determine if the repair is covered under the contract.
Once the claim is approved, Wrench can proceed with the repairs. Most jobs can be performed in a driveway or parking spot while the customer is at home or work.
“GWC Warranty is a respected provider of vehicle service contracts and other F&I products that protect consumers against the rising cost of service repair,” said Casey Willis, co-founder of Wrench. “We’re thrilled to partner with GWC and look forward to providing their customers with the added convenience of not having to wait at a shop or leave their vehicle for a day while it’s being repaired.”
To learn more about this development, visit https://gwcwarranty.com.
Protective Asset Protection recently shared a new set of data analysis showing how much average claims have increased annually for GAP payouts and vehicle service contract (VSC) claims dating back to 2014.
The provider of F&I programs, services and dealer owned warranty company programs found the average GAP claim payout has risen 19.5% between 2014 and 2018 for new vehicles, and a 95% increase over the same time for used vehicles. The company indicated new vehicles have averaged a 4.7% increase each year during that time and 18.5% per year increase for used vehicles.
Protective Asset Protection pointed toward several factors that have led to this increase in GAP claims payouts over the last few years, including
— An increase in claims due to more accidents with more cars on the road
— Insurance companies are more likely to total vehicles due to rising replacement parts complexity and corresponding costs, in conjunction with falling residual values (particularly for cars over SUVs/crossovers and trucks).
— More impactful weather events driving up claims payouts in recent years.
Protective Asset Protection went on to share that average VSC claims have risen 21% between 2014 and 2018 for new vehicles and a 3.7% increase for used vehicles. New vehicles have averaged a 5% increase each year during that time, with a smaller 0.9% increase for used vehicles.
“Service contract claims had among their largest payout increases in 2018 for both new and used vehicles, which illustrates that the costs associated with repairs and parts replacements continues to rise due to the complexity of today’s vehicles,” Protective Asset Protection senior vice president of operations and information technology Christopher Bernish said.
“GAP claims are impacted by many of the same factors but also tend to be influenced by weather patterns, which is understandable, given recent devastating hurricanes and other weather events,” Bernish continued.
While many analysts continue to predict softening new-vehicle sales, Protective Asset Protection emphasized used-vehicle demand is expected to continue to increase throughout the year. In fact, Edmunds analysts expect 2019 used-vehicle sales to reach 41 million, their highest level since the recession.
These trends will certainly impact F&I product claims activity going forward, according to Protective Asset Protection.
“Dealers continue to focus on F&I programs to combat margin compression and improve ownership satisfaction,” Protective Asset Protection said. “Ownership groups have also looked to have greater transparency with their F&I programs such as leveraging dealer-owned warranty company structures, whereby dealers own, market, sell and support their own branded F&I program.
“Besides greater profit potential on F&I sales, the great benefit here lies in the fact that dealers offer their own F&I offerings ranging from service contracts to ancillary products,” the provider went on to say.
