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George Skentzos

Head of Marketing & CX
 @ 
Loopit

Handling warranty and repairs is a critical aspect of any car subscription business, as it directly affects customer satisfaction and operational efficiency. A unique value proposition of the car subscription model is that there is always an implied warranty with any vehicle, regardless of age, mileage and condition.

In this article, we will explore various aspects of warranty and repairs in car subscription services, including factory warranties for newer vehicles, managing major repairs, the division of responsibilities between the business and the subscriber, and other relevant considerations to ensure a smooth and satisfactory experience for all parties involved.

Factory Warranties for Newer Vehicles

Many newer vehicles within a car subscription service's fleet will likely be covered under factory warranties.

This means that subscribers can enjoy the peace of mind that comes with knowing that any issues or defects that may arise during their subscription term will be addressed by the manufacturer at no additional cost.

Car subscription providers can even rely on the incumbent warranty repair process which may also include a courtesy vehicle which can be passed on to the subscriber for the duration of the repair.

Managing Major Repairs

In cases where a vehicle requires major repairs not covered by the factory warranty, car subscription services must have a plan in place to manage these situations efficiently.

This may involve partnering with reputable repair facilities, negotiating favorable rates, and ensuring that repairs are completed in a timely manner to minimize disruption for subscribers.

By effectively managing major repairs, car subscription services can maintain customer satisfaction and reduce downtime for their fleet.

Division of Responsibilities: Business and Subscriber

It is essential for car subscription services to clearly define the responsibilities of both the business and the subscriber when it comes to warranty and repairs.

Generally, the business is responsible for ensuring that the vehicles in its fleet are well-maintained and in good working order, while the subscriber is responsible for reporting any issues or concerns promptly and adhering to the vehicle's maintenance schedule.

By establishing clear expectations and guidelines, car subscription services can minimize confusion and potential disputes surrounding warranty and repair issues.

Regular Maintenance and Preventative Care

To minimize the need for repairs and keep their fleet in optimal condition, car subscription services should prioritize regular maintenance and preventative care.

By adhering to manufacturer-recommended maintenance schedules and addressing any potential issues before they escalate, car subscription services can reduce repair costs, maintain the reliability of their fleet, and provide subscribers with a safe and enjoyable driving experience.

Transparent Communication and Customer Support

Effective communication and customer support are crucial when dealing with warranty and repair issues in car subscription services.

Businesses should provide subscribers with a clear point of contact for reporting concerns, and keep them informed about the status of repairs and expected timelines.

By maintaining open lines of communication and demonstrating a commitment to customer satisfaction, car subscription services can foster trust and loyalty among their subscribers.

Conclusion

Navigating warranty and repairs in a car subscription business requires careful planning, clear communication, and a proactive approach to maintenance and customer support.

By understanding the nuances of factory warranties, managing major repairs efficiently, clearly defining responsibilities, and prioritizing preventative care, car subscription services can ensure a positive experience for their subscribers and maintain the reliability and performance of their fleet.

About the Author

George is one of the founding team members for Loopit, having successfully launched the original car subscription model for HelloCars which went on to become the basis for the Loopit platform as we know it today. George is no stranger to automotive startups, beginning his career with CarAdvice.com which would later exit for $60m in 2016.

George Skentzos

Head of Marketing & CX
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Payment Management & Arrears
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Technology Standards
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Regulatory Environment
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Profitability Analysis
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Performance Metrics
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Operational Requirements
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Defleet Management
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Technology Partners
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What is Car Subscription?
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Back-End Operations
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Digital Customer Experience
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Captives & Incumbents
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Subscription Models
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Subscription Agreement
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Fair Wear and Tear Policy
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Incident Management
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Scaling Your Business
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Vehicle Profitability
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Subscription Metrics
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Bookkeeping & Accounting
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Breaches and Repossessions
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Accounts Receivables
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Customer Assessment
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Vehicle Collection and Handover
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Vehicle Monitoring
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Vehicle Management
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Application and Pre-Approval
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Car Subscription Website
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Car Subscription Plans
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Customer Acquisition
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Marketing Strategy
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Payment Guidelines
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Identification Guidelines
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Car Subscription Business Models
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Key Personnel Roles
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Defining the Business Structure
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Subscription vs Ownership
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The Future of Automotive Retail
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Arrears Management
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Breaches & Repossessions
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