Extended warranties for vehicles are a topic of growing importance for both customers and dealerships. They offer peace of mind to buyers of new and used cars, while also representing a business opportunity for companies in the automotive sector, provided they have the tools to offer them correctly. In this article we will analyse this type of warranty in detail: what they are, how they differ from the legal warranty, the benefits they bring and how to implement them successfully in a dealership.
1. The importance of warranty when buying a vehicle
When someone buys a new vehicle, one of the things they value most is having the protection of a warranty against possible faults or technical failures. Legally, all new cars have a manufacturer warranty during the first 2 years, but many buyers want to extend this cover for extra peace of mind.
In the case of second-hand vehicles, warranty is also a decisive factor in the purchase. As they are not new cars, the risk of breakdowns is greater, so having support for repairs is essential for the customer.
This is where extended warranties come in: additional cover that extends protection beyond the legal period and gives owners peace of mind.
2. Differences between legal warranty and extended warranty on cars
The main difference between the legal warranty and an extended warranty lies in the cover and duration. The legal warranty covers only manufacturing faults during the first years of use (generally 2 years), whereas an extended warranty provides broader cover for longer.
Some points to bear in mind:
Cover: the legal warranty covers faults attributable to incorrect assembly of parts or material defects. An extended warranty usually includes failures due to normal wear and tear of parts.
Duration: the legal warranty lasts 2 years from purchase for new vehicles. The extended version can extend this period from 2 to 5 years.
Cost: the legal warranty is free, whereas you have to pay extra for the extended warranty.
In short, an extended warranty gives you greater protection (in terms of cover and time) against unforeseen issues, but it involves an extra outlay.
3. The role of CoberClick in the warranty market
CoberClick is a company specialising in warranties for the vehicle sales sector. Its way of working is focused on meeting the real protection needs of professionals in this market. It is a young, pioneering company with a desire to change the rules of the game.
This company offers mechanical warranties tailored to each type of vehicle, with better cover, availability of resources and an innovative capital refund system based on the level of claims. Its great effectiveness and problem-solving ability has not only won over its customers, but Angel Gaitán himself dedicates an article to them in his motoring magazine ChasisCero.com.
In addition, CoberClick provides dealerships with a complete network of workshops and its own mobile app to manage repair and maintenance processes quickly and efficiently.
Without doubt, this company is positioned as a great ally for industry professionals when it comes to implementing successful extended warranties. That is why Dealcar has created an alliance with Coberclick and together they are revolutionising the sale of used cars, offering higher margins to dealerships, more sales arguments and more trust for their customers.
4. New warranty law for second-hand vehicles
Recently, new legislation came into force in Spain that changes the deadlines and conditions for warranties on used vehicles. The main changes are:
For transactions between professionals, warranty cover increases from 1 year to 2 years, and may only be limited to 1 year if expressly agreed.
Cover for "hidden defects" is included. In other words, the seller must be liable if there were defects in the vehicle before the sale, even if they did not tell the buyer about them.
The seller becomes responsible for faults that occur during the first 12 months after the sale, assuming they are the result of hidden defects.
After 1 year, the buyer must prove that the breakdown is not due to use, but to a defect already present at the time of purchase.
This law aims to provide more protection and safeguard buyers of used vehicles. For sellers, it means taking on more responsibilities and risks.
5. Benefits of extended warranties for the customer
For buyers of vehicles, taking out an extended warranty brings important benefits:
Peace of mind: the extra cover protects you against serious mechanical faults that could involve high repair costs.
Savings: with repairs covered, you avoid unexpected expenses for faults in future years when parts and labour will be more expensive.
Convenience: most include breakdown recovery and a replacement car in the event of faults that prevent the vehicle from being driven.
Higher resale value: by transferring the active warranty to a new owner, the vehicle gains value. Bear in mind, as long as the warranty is not nominal.
As you can see, the extra investment in an extended warranty makes sense because it gives you peace of mind and can represent long-term savings.
6. Benefits of extended warranties for the dealership
In addition to the benefits for customers, as a company specialising in the sale of used vehicles, offering extended warranties on your cars has major advantages:
Differentiating value: it positions you above the competition, as you offer more warranty than the rest. It is one of the variables customers value most when making a purchase.
Higher vehicle turnover: as they are more attractive to buyers, sales speed up.
Customer loyalty: feeling supported makes it more likely they will buy a car from you again in the future.
Profitability: selling warranties generates recurring income with an interesting profit margin.
Better reputation: satisfied customers improve word of mouth and attract more buyers.
Ultimately, you not only benefit your customers, but also boost the profitability and reputation of your vehicle dealership business.
7. How to know if my car has an extended warranty
If you have already bought a vehicle and want to know whether it has any kind of extended warranty beyond the legal one, you can check it easily by following these steps:
Check all the documentation provided at the time of sale and look for the extended warranty contract if there is one. There you will find the terms, cover and conditions.
Check the purchase invoice to see whether any extended warranty is itemised.
Contact the dealership where you bought the car and ask whether you took out any kind of extended warranty. They will be able to tell you.
Extended warranties are often issued on a physical card, credit-card style. Check whether you have one in your possession.
8. Extended warranties and software for car dealerships
Implementing extended warranties in a dealership can be made easier by using specific software to manage these services. These programmes make it possible to keep detailed control of the warranties offered, as well as the repairs carried out and the associated costs.
Some of the advantages of using car dealership software to manage extended warranties are:
Improving the sales process: by fully digitising the payment process, we obtain the warranty price instantly and the customer can purchase it with a click at the exact moment they reserve the car.
Process automation: the software allows tasks such as generating warranty contracts, tracking repairs and invoicing to be automated.
Inventory control: the programme can keep a record of the parts used in repairs, making stock management easier and preventing losses.
Improved customer service: by having up-to-date and accessible information on warranties and repairs, the dealership can provide faster and more efficient service to its customers.
Data analysis: the software makes it possible to analyse information about the warranties offered and the repairs carried out, which can help identify areas for improvement and business opportunities.
9. Conclusions
Extended warranties represent a business opportunity for vehicle dealerships and a source of peace of mind for buyers. By offering broader and longer-lasting cover than the legal warranty, these warranties can improve the buying experience and build customer loyalty.
Ultimately, extended warranties are a smart investment for both vehicle buyers and dealerships, as they provide peace of mind, security and economic benefits in the short and long term.
Extended warranties for vehicles are a topic of growing importance for both customers and dealerships. They offer peace of mind to buyers of new and used cars, while also representing a business opportunity for companies in the automotive sector, provided they have the tools to offer them correctly. In this article we will analyse this type of warranty in detail: what they are, how they differ from the legal warranty, the benefits they bring and how to implement them successfully in a dealership.
1. The importance of warranty when buying a vehicle
When someone buys a new vehicle, one of the things they value most is having the protection of a warranty against possible faults or technical failures. Legally, all new cars have a manufacturer warranty during the first 2 years, but many buyers want to extend this cover for extra peace of mind.
In the case of second-hand vehicles, warranty is also a decisive factor in the purchase. As they are not new cars, the risk of breakdowns is greater, so having support for repairs is essential for the customer.
This is where extended warranties come in: additional cover that extends protection beyond the legal period and gives owners peace of mind.
2. Differences between legal warranty and extended warranty on cars
The main difference between the legal warranty and an extended warranty lies in the cover and duration. The legal warranty covers only manufacturing faults during the first years of use (generally 2 years), whereas an extended warranty provides broader cover for longer.
Some points to bear in mind:
Cover: the legal warranty covers faults attributable to incorrect assembly of parts or material defects. An extended warranty usually includes failures due to normal wear and tear of parts.
Duration: the legal warranty lasts 2 years from purchase for new vehicles. The extended version can extend this period from 2 to 5 years.
Cost: the legal warranty is free, whereas you have to pay extra for the extended warranty.
In short, an extended warranty gives you greater protection (in terms of cover and time) against unforeseen issues, but it involves an extra outlay.
3. The role of CoberClick in the warranty market
CoberClick is a company specialising in warranties for the vehicle sales sector. Its way of working is focused on meeting the real protection needs of professionals in this market. It is a young, pioneering company with a desire to change the rules of the game.
This company offers mechanical warranties tailored to each type of vehicle, with better cover, availability of resources and an innovative capital refund system based on the level of claims. Its great effectiveness and problem-solving ability has not only won over its customers, but Angel Gaitán himself dedicates an article to them in his motoring magazine ChasisCero.com.
In addition, CoberClick provides dealerships with a complete network of workshops and its own mobile app to manage repair and maintenance processes quickly and efficiently.
Without doubt, this company is positioned as a great ally for industry professionals when it comes to implementing successful extended warranties. That is why Dealcar has created an alliance with Coberclick and together they are revolutionising the sale of used cars, offering higher margins to dealerships, more sales arguments and more trust for their customers.
4. New warranty law for second-hand vehicles
Recently, new legislation came into force in Spain that changes the deadlines and conditions for warranties on used vehicles. The main changes are:
For transactions between professionals, warranty cover increases from 1 year to 2 years, and may only be limited to 1 year if expressly agreed.
Cover for "hidden defects" is included. In other words, the seller must be liable if there were defects in the vehicle before the sale, even if they did not tell the buyer about them.
The seller becomes responsible for faults that occur during the first 12 months after the sale, assuming they are the result of hidden defects.
After 1 year, the buyer must prove that the breakdown is not due to use, but to a defect already present at the time of purchase.
This law aims to provide more protection and safeguard buyers of used vehicles. For sellers, it means taking on more responsibilities and risks.
5. Benefits of extended warranties for the customer
For buyers of vehicles, taking out an extended warranty brings important benefits:
Peace of mind: the extra cover protects you against serious mechanical faults that could involve high repair costs.
Savings: with repairs covered, you avoid unexpected expenses for faults in future years when parts and labour will be more expensive.
Convenience: most include breakdown recovery and a replacement car in the event of faults that prevent the vehicle from being driven.
Higher resale value: by transferring the active warranty to a new owner, the vehicle gains value. Bear in mind, as long as the warranty is not nominal.
As you can see, the extra investment in an extended warranty makes sense because it gives you peace of mind and can represent long-term savings.
6. Benefits of extended warranties for the dealership
In addition to the benefits for customers, as a company specialising in the sale of used vehicles, offering extended warranties on your cars has major advantages:
Differentiating value: it positions you above the competition, as you offer more warranty than the rest. It is one of the variables customers value most when making a purchase.
Higher vehicle turnover: as they are more attractive to buyers, sales speed up.
Customer loyalty: feeling supported makes it more likely they will buy a car from you again in the future.
Profitability: selling warranties generates recurring income with an interesting profit margin.
Better reputation: satisfied customers improve word of mouth and attract more buyers.
Ultimately, you not only benefit your customers, but also boost the profitability and reputation of your vehicle dealership business.
7. How to know if my car has an extended warranty
If you have already bought a vehicle and want to know whether it has any kind of extended warranty beyond the legal one, you can check it easily by following these steps:
Check all the documentation provided at the time of sale and look for the extended warranty contract if there is one. There you will find the terms, cover and conditions.
Check the purchase invoice to see whether any extended warranty is itemised.
Contact the dealership where you bought the car and ask whether you took out any kind of extended warranty. They will be able to tell you.
Extended warranties are often issued on a physical card, credit-card style. Check whether you have one in your possession.
8. Extended warranties and software for car dealerships
Implementing extended warranties in a dealership can be made easier by using specific software to manage these services. These programmes make it possible to keep detailed control of the warranties offered, as well as the repairs carried out and the associated costs.
Some of the advantages of using car dealership software to manage extended warranties are:
Improving the sales process: by fully digitising the payment process, we obtain the warranty price instantly and the customer can purchase it with a click at the exact moment they reserve the car.
Process automation: the software allows tasks such as generating warranty contracts, tracking repairs and invoicing to be automated.
Inventory control: the programme can keep a record of the parts used in repairs, making stock management easier and preventing losses.
Improved customer service: by having up-to-date and accessible information on warranties and repairs, the dealership can provide faster and more efficient service to its customers.
Data analysis: the software makes it possible to analyse information about the warranties offered and the repairs carried out, which can help identify areas for improvement and business opportunities.
9. Conclusions
Extended warranties represent a business opportunity for vehicle dealerships and a source of peace of mind for buyers. By offering broader and longer-lasting cover than the legal warranty, these warranties can improve the buying experience and build customer loyalty.
Ultimately, extended warranties are a smart investment for both vehicle buyers and dealerships, as they provide peace of mind, security and economic benefits in the short and long term.
