The Warranty Group is claiming to be first to the market with a new hybrid product that they call Service Plus. The product amalgamates features of a traditional warranty, with a service plan, into single pay-monthly aftersales "safety net".
Chris Benham, business development director at The Warranty Group was quick to emphasise the benefits for dealers: "For dealers and manufacturers, Service Plus can increase retention back into the dealership for future servicing with increased opportunities for upsell. Its scope for holding on to older vehicle owners is very exciting.
"One of the times when customers are most likely to want to consider a service plan or warranty product is when they enter a dealership for regular servicing or repairs. "We envisage an existing service customer being offered Service Plus as they come to collect their car. Typically, their warranty will have expired and they will have had to pay for their service in one hit.
"Service Plus will hold many benefits for these consumers, with them being safe in the knowledge that the key components are covered by the guarantee element of the product and they have budgeted instalments for the next service, being taken care of by monthly direct debit."
Chris is confident that while the hybrid model will not completely replace the traditional products in the market place, it will find its niche:"There will often be very good reasons for keeping service plans and warranties as separate products, mainly in order to maintain a high level of flexibility in each.
"However, it also makes sense in some instances to be able to offer them together as a hybrid product that provides a high level of support for the customer in one package. This is Service Plus. Ensuring that customers are treated fairly is essential and we will provide training and support to ensure that this takes place."