Rethink Warranty

Protect more. Profit more. Risk less.

Warranty is changing. As vehicles become more complex, repair costs increase and margins remain under pressure, the question for dealers is no longer simply “What does warranty cost?”

It’s “What should our warranty strategy be doing for our business?”

At Warranty Solutions Group, we believe warranty should be considered as part of a dealership’s wider strategy for risk, revenue, retention and customer experience.

LET’S TALK WARRANTY

Warranty is more than a cost. It's a commercial strategy.

A strong warranty doesn’t just protect customers when something goes wrong.

It can help protect your dealership from significant repair exposure, strengthen your vehicle proposition, increase customer confidence and create an additional source of profit.

The opportunity is to stop treating warranty as something that sits in the background – and start considering what it can contribute to the wider business.

1. RISK

Understand what you’re retaining. Transfer what you don’t want to carry.

Every dealership carries risk. The important question is how much – and whether they understand the full potential exposure.

2. REVENUE

Turn protection into a profit opportunity.

Offering customers a longer-term warranty product creates an opportunity to generate incremental revenue beyond the vehicle sale.

3. RETENTION

Give customers another reason to stay connected.

The right proposition can support longer customer relationships and strengthen the overall ownership experience.

4. REASSURANCE

Give customers greater confidence in their purchase.

A strong warranty adds tangible value to the vehicle sale – and reassurance that support is there when it matters.

Dealer Fund or warranty?

Perhaps that’s the wrong question.

The growing conversation around self-funded schemes has brought risk retention into sharper focus across the industry. But self-funded schemes and warranty don’t necessarily have to be competing strategies.

Self-funded schemes allow a dealership to retain and budget for repair risk.

Warranty allows defined risk to be transferred away.

For some dealerships, the right strategy may involve elements of both.

What matters is understanding the total risk being retained – not simply looking at the average number or cost of repairs.

Because frequency is only part of the equation.

A dealership might comfortably absorb a series of relatively modest repair bills. But modern vehicles can also produce less frequent, significantly more expensive failures.

Could your repair budget absorb a

£10,000+ engine replacement?

And what happens if several high-value failures land within a relatively short period?

That’s where the difference between budgeting for the average and planning for the potential exposure becomes important.

The question isn’t simply whether your dealership can afford to retain risk. It’s whether you understand how much risk you’re retaining – and where you want that risk to sit.

£30+ million

paid in claims.

Five years of real-world claims intelligence.

Since launching in 2021, WSG has paid more than
£30 million in approved claims.

That gives us extensive real-world insight into:

What fails.
How often it fails.
What it costs when it does.
How vehicle risk is changing.

We use that experience to help our dealer partners build warranty propositions that work commercially while delivering genuine protection for their customers.

Almost

3,000

dealer partners.

From independents to some of the UK’s largest groups, WSG supports almost 3,000 dealer partners and hundreds of thousands of motorists annually.

But we don’t believe every dealer should be given the same warranty proposition.

Different stock profiles, customers, commercial objectives and appetites for risk demand different solutions. That’s why our approach is built around understanding your business first – and creating a warranty strategy around it.