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Mercedes ‘pay as you go’ warranty boosts retailer opportunities

13th January 2010 Print
Mercedes-Benz S-Class

Just four months since the launch of Mercedes-Benz Online Warranty, 40% of its approved used customers have opted to pay monthly, benefiting from flexible levels of cover as and when they need it most, plus the ability to cease payments as and when they change their vehicle. The online warranty scheme, operated by the UK’s 2nd largest motor manufacturer warranty provider Mondial Assistance, is not only bringing a new dimension to Mercedes Benz customer service, but boosting revenue streams across its network, making its launch an overwhelming success for Mercedes-Benz and its retailers.

The new warranty scheme is a valuable after-sales offering that its retailers can promote to Mercedes-Benz owners whose three year new car warranty or approved used car warranty is due to expire. Customers are given the flexibility to purchase an annual package or pay monthly. The level of cover can be selected irrespective of mileage and in the event of a claim, an excess can be used to reduce premiums.

Ensuring that business returns to the Mercedes-Benz network, its web based Warranty  offering stipulates that customers must take their vehicle to be serviced by an approved Mercedes-Benz retailer.  The launch has brought a clear boost to business for Mercedes-Benz, delivering a valued service to the customer and building on loyalty and retention in the long-term.

Phil Parry, Sales Development Manager for Mercedes Benz UK says:  “Customers who were perhaps less inclined to take advantage of our annual warranty offering have responded really positively to the pay monthly option.  Managing finances is crucial for everyone at the moment and our warranty solution helps customers to do just that without them feeling burdened by a long term commitment.  What’s more, our retailers are benefiting from the relationships the scheme is building with our customers, without the actual task of having had to sell the service to them in the first place.  It’s a win win for us and our customers.”

All aspects of the sales process for the new scheme, including marketing to customers due for renewal and all FSA regulatory aspects, are carried out online or managed via a dedicated Mercedes Benz resource. This ensures that Mercedes-Benz retailers benefit from a dynamic warranty solution that best reflects the needs of its customers today, without detracting its retailers sales teams from focusing on vehicle sales.

Prices for Mercedes-Benz Online Warranty start at just £30 per month for an A Class “driveline” cover with £250 excess, more typically, £50 for an A Class with no excess.

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Mercedes-Benz S-Class