Limited warranties protect customers from the high cost of unexpected repairs and can be a differentiator for dealers — and not just in sales and service, says Tim Blochowiak, a vice president at Protective Asset Protection, in an exclusive to DealerELITE.

Properly leveraged, limited warranties can accelerate dealer wealth-building by placing reserves into the dealer’s reinsurance or dealer-owned warranty company program.

“With limited warranties embedded into this wealth-building strategy, dealerships can multiply their financial benefits,” Blochowiak writes. “For example, if a dealer places a 3-month/3,000-mile limited warranty on each eligible used vehicle, they can offer this warranty free to the consumer while earning underwriting and investment income.”

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