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The start point for the best source of fleet information |
Gerrans tells us that his company's background is very much in the B2C marketplace. He says: "Our previous company was in the extended warranty business, and we learnt a lot there - including what we weren't doing! The opportunities were there to offer more products and services and that led us into MotorEasy.
"MotorEasy has been a great success since we started it in 2016, we've got nearly a million members on the books now, and its got to a stage where there's an opportunity to take a big breath and say, 'well hang on a minute, there's this other market out there, that really we've historically really ignored'. Now is the time to spread our wings.
"It has always been a challenge to move into the fleet market - there are plenty of well-established companies. We're not expecting sudden growth, but we've had some initial success, which has been great. I think it's really all about timing and grasping the opportunity.
"We are the fastest-growing motor organisation in the UK, and it's time to take advantage of that. We've sponsored the What Car? Awards a couple of times, and that's been aimed at the corporate sector, but in a low-key way. We're now a bit more active, and able to talk to fleets, by putting ourselves more in front of them. That has been something of a resource issue in the past, as everyone's been embedded in the business that we've already got.
"If a leasing company saw what we were doing and picked up with us - we've started working with them. So, there's one or two leasing companies that we're already operating with, but as we've become proactive, we've started gaining more business and customers. But we won't be diluting our activity elsewhere by extending our reach."
On the new car front, Gerrans tells us the products that will appeal would be gap insurance, alloy wheel insurance, cosmetic insurance, and tyre insurance. He says: "They're probably the main products for the new car sector, altogether we've got 11 products and services that we offer - but those would be the key ones.
"On used cars, we've got an extended warranty, that is there for disposals. We can provide an extended warranty for these cars and likewise, particularly for 'Driver Sales,' we see a big opportunity there. Buyers need confidence and peace of mind and cars that are being sold often won't have a warranty with them.
"One of our products is called a 'warranty wrap,' which we sell where there is some warranty left on vehicle that's being sold. Let's say for example there's three-months left; we could extend that to 12 months quite easily. For any leasing company disposing of cars, a fixed period of warranty could be very useful. It is quite cleverly done, as they've got a manufacturer's warranty for a little while, then ours takes over as and when that expires. That's how we make it work.
"I also think a lot of leasing companies are possibly exposed, because as leases are extended the warranty has expired, but the car's still on their books. We can help there, too.
"We've more recently brought in service plans, covering normal servicing and MOTs. We can arrange servicing of new cars that is satisfactory for manufacturers to keep any warranty remaining on the car. I know a lot of fleet companies working with us have reduced their costs by getting their cars serviced through our network, where they are significantly cheaper than the main dealer would charge. So, that's been a growing area for us, and we see that as another opportunity.
"Once we've started dealing with a customer, they get their own account area and stay there for however long they wish. From picking up a new car, they deal with MotorEasy throughout the whole time they have that car. They can even stay with us for their next new one and add extra cars - as this account area provides road tax and MOT reminders. Plus, they can log all the service history in there, too. So, we can manage their needs for all their ongoing motoring maintenance."
Gerrans is candid that some significant contracts have already been picked up. "There's no big secret that we're providing Arval with warranties for their Driver Sales. Arval is one of the biggest leasing companies out there, so we're very proud of that, and it's all being managed very smoothly. I know they're very happy with the service they've received so far.
"We're doing good numbers of gap sales with Close Finance, and there are other leasing companies we're involved with for value added products. Many of our conversations involve these insurance protection products, and these 'VAPs' are a radically growing part of our business.
"We're in a great place, we can do whatever is required, to be honest we can do it through a third party or deal directly with the driver - whichever way we need to structure we can make it work. This is both great and unusual, there aren't many providers in the fleet sector that can talk B2C."
Gerrans is quick to point out that an extended warranty could potentially save customers
huge sums, but it might not if nothing goes wrong with the car! Although, he believes that serious money can be saved with servicing and MOTs, if the car is run that far.
He says: "We're generally 40% cheaper than a main dealer for recommended servicing. I think that's where customers could save a lot of money. There is often a reluctance to go outside the dealer network to get cars looked after, and historically its always been a bit of grey area. There's always been some doubt that this maintenance will invalidate the warranty. Well, it's pretty tied down now, and there are plenty of independents that know exactly what they must do to conform with the manufacturer's protocols. I think that's where the savings can be made.
"We do offer a budget service; we always recommend that our members stick to the manufacturers service schedule - it's just that we can save them a lot of money doing it."
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