Pay-as-you-go flexibility proves a winner for customers on tight budgets
Mondial Assistance UK has seen an 8% increase in used car warranty sales in 2011, compared to the previous year. As one of the UK’s largest providers of motor manufacturer warranty schemes, Mondial Assistance delivers administration services for nine motor manufacturers and extended warranty for 13 clients in this sector. This success is due in part to the launch of Mondial Assistance’s innovative pay-as-you-go extended warranty cover, helping motorists manage costs and stay protected.
Over the past year, Mondial Assistance UK has seen a shift towards older used car owners financially planning for unexpected repair expenses. In 2011, 63% of one scheme’s total warranty registrations were applied to cars over three years of age, compared to just 49% in the previous year.
Whilst dealers generally provide a warranty free of charge to customers as part of manufacturers’ Approved Used Car Programmes, Mondial Assistance’s “quote to buy” extended warranty sales platform provides continued peace of mind for customers after their dealer warranty expires.
“Our innovative monthly pay-as-you-go offer was a key factor in the 18% increase we saw in extended warranties in 2011, compared to 2010,” says Liz Grindell, Warranty Manager for Mondial Assistance UK. “The flexible payments scheme means customers can choose the time-scale of their warranty package. This is a real boon for motorists, at a time of economic uncertainty, with fears about employment security, pay freezes and the rising cost of living all taking their toll on UK households.
“In addition, our “quote to buy” solution allows customers to choose the level of warranty cover to suit their budget. By offering customers flexible cover and payment options, Mondial Assistance is improving access to affordable protection for their car. And dealer networks benefit from increased customer retention, as more motorists opt to keep their vehicles for longer in the current climate. With some customers looking to buy slightly older vehicles due to budget restraints, strong manufacturer-backed warranty is essential to protect them from the cost of potential repairs.
“We have had another year of continued growth, despite tough market conditions, which confirms the value of Mondial Assistance’s innovative approach to warranty and our entire suite of products. Mondial Assistance continues to work closely with its clients to ensure that it provides them with warranty products that meet market demands and help them achieve their sales objectives.”