AVOCA, Pa., March 15, 2022 /PRNewswire/ — ProGuard Warranty has announced enhancements to its existing vehicle protection plans to help auto dealers adjust to current inventory shortages. These changes were developed to address the lack of new, leased and non-lease vehicles entering the market, a situation that has increased acquisition costs at auction houses. Feeling the pinch, many dealers are put in a position to make a sale or make a profit. With products sold exclusively through resellers, ProGuard felt compelled to find alternative solutions to help resellers compete in today’s market.
“Last year, we began working on ideas to address the lack of inventory and other major issues facing independent and franchise dealerships today,” said Dominique Limongelli, President and Chief Operating Officer. “There are still no new vehicles, used cars are hard to come by and once secured, fly off the lot. Our dealerships who have inventory are doing incredibly well, but there are many who have nearly empty lots and are struggling to survive. We have focused on improving coverage of vehicles that have no shortage to attract customers and increase back-end profitability.”
Commercial vehicles are a market segment that ProGuard believes has great potential in this environment. “On top of everything else, the pandemic has caused a change in the workplace. Many are choosing to quit their jobs and work for themselves. Small and medium-sized businesses are popping up everywhere, creating a need for commercial vehicles that n wasn’t there before.” Limongelli suggested. Their commercial coverage is designed for a variety of commercially registered vehicles, including ride-sharing, delivery vans, and utility trucks up to medium duty. Mileage bands have been increased and the annual mileage allowance has been expanded to help companies offset the rising costs of doing business. “By adding commercial vehicles to their product offering, dealerships can cultivate new customers and attract business owners with whom they already have a personal relationship.”
Electric and hybrid vehicles are another segment of the used market that ProGuard says is poised to take off. “Gasoline prices are attracting a whole new audience to these vehicles at the same time we are seeing an influx of used models into the market. about their battery life and start trading them.” noted Jan Klaissvice president of analysis.
Seeing the potential, ProGuard has committed R&D resources to develop coverage specific to electric, plug-in and hybrid vehicles. “The components that power these machines are new to dealers, who are often hesitant to sell used electric vehicles because they don’t want to risk putting a $5–8K battery in their wallet,” Limongelli explained. “We designed our plan to cover the components most likely to fail, not just the propulsion battery, and priced it cost-effectively to attract buyers. By working with us, dealers can access this growing market with little to no risk and increase profitability by participating in our revenue generating programs. The company has also addressed dealer concerns about service, knowing that very few have the in-house expertise to handle With networked repair facilities nationwide and a partnership with RepairPal Certified Shops, ProGuard can provide recommendations on where to take vehicles for service if a dealership is not equipped to do so.
Change is inevitable and ProGuard is committed to providing innovative solutions that help dealers succeed by anticipating the unexpected. “Our partner dealers know they can count on us to be the eyes and ears of the market,” Limongelli said. “Having been in this business for a long time, we are certain that the automotive market will continue to offer challenges and we have made it our mission to help dealers adapt to an ever-changing market.”
About the ProGuard Warranty
ProGuard is a third generation family business serving the automotive industry for over seventy years. Their many years in the industry have led to unique expertise in the product knowledge and coverage needed to protect dealers and their customers. They offer an extensive menu of new and used vehicle protection plans through their nationwide dealer partner network that offers extensive coverage ranging from a limited powertrain to an exclusion policy that mimics warranty from the manufacturer. They also offer a CPO program with multipoint inspection, GAP policies and reinsurance. Dealers appreciate the company’s tradition of flexibility, transparency and simplicity, and their customers value their commitment to protecting them from the high cost of repairs.
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SOURCE ProGuard Warranty