Machine learning warranties for used cars

MotorEasy has partnered with Dutch-based AutoTrust to bring its machine-learning extended warranty platform for approved used car schemes to the UK.

The ‘Open Warranty’ system also allows dealers to offer customers maintenance subscription plans normally only associated with leasing contracts. The fixed subscription plan will cover maintenance and repair costs for retail customers without being tied into a contract.

MotorEasy will use the tool to target OEM and progressive franchised dealer groups as it seeks to build on its 10,000 strong independent workshop network that delivers MOT, servicing and repairs to its expanding customer base.

AutoTrust has successfully rolled out maintenance subscription to Opel, and its intelligent approved used warranty programme to Peugeot in the Netherlands so far.

The ‘Open Warranty’ technology uses machine-learning to set the price on extended warranties by automatically analysing real claims data to accurately predict the cost of a warranty at any given point of a vehicle’s life.

This reduces costs for both drivers and OEMs as it requires less human interaction than traditional warranties.

Duncan McClure Fisher, MotorEasy Chief Executive, said: “The extended warranty market for approved schemes has been stale, uncompetitive and costly to administer. Driven by machine-learning, we can now offer a truly flexible product that directly appeals to the needs of the franchised model.”