Trade Protection Plan™ by MAP
Frequently Asked Questions
Q. What
is Trade Protection Plan by MAP?
A. Trade
Protection Plan by MAP is a short-term (seven months or 14,000 miles) Vehicle
Service Contract designed to cover the gap between the time when manufacturer’s
warranty runs out and the vehicle is traded. Trade Protection Plan provides the
opportunity for dealerships to significantly increase VSC penetration. The
program is also designed to drive repeat and referral business, a powerful new
concept for VSC offerings.
Q. What
is the contract term length?
A. Coverage
for Trade Protection Plan by MAP runs concurrent with the manufacturer’s full
basic warranty and extends beyond the end of the warranty for seven months or
14,000 miles, whichever comes first.
Q. Who is
the target customer?
A. Trade
Protection Plan by MAP was developed to address the needs of customers who
typically do not opt for a VSC for various reasons. In many dealerships, that
can account for as many as 55% to 70% of customers. The top reasons consumers
often give for not purchasing a vehicle service contract include the cost, lack
of use, dissatisfaction from a prior experience or the expectation that they
will trade before the end of the warranty. EFG Agency Services designed this
VSC program to address the principle concerns of consumers and provide them an
option that better meets their needs.
Q. What
does Trade Protection Plan by MAP coverage include?
A. Trade
Protection Plan’s seven (7) month or 14,000 mile plan includes:
• mechanical
breakdown coverage;
• rental
coverage;
• trip
interruption coverage;
• roadside
assistance;
• road
hazard coverage;
• windshield
coverage; and
• door
ding coverage.
Q. Why
buy Trade Protection Plan by MAP instead of a standard VSC?
A. This plan
targets the customer who typically chooses not to purchase a standard VSC.
There is still a robust market for standard Vehicle Service Contracts;
customers who need a standard VSC will continue to purchase them. Trade
Protection Plan is a low cost, consumer-friendly VSC. Claims are made on a
“sign and drive” basis; there’s a single toll free number to handle all claims
regardless of which type of coverage they’re calling about.
Q. What
is the cost to the consumer?
A. For
customers with a standard 36-month/36,000-mile factory warranty, the price is
just $700. For factory warranties greater than 36-month/36,000-miles, the cost
is $800. This low retail price represents a significant savings over standard a
la cart menu pricing where the consumer selects the components individually.
Q. What
are the benefits of Trade Protection Plan by MAP for dealerships?
A. Trade
Protection Plan is designed to:
• help
dealerships’ retain their current customer base and ensure customer loyalty;
• increase VSC penetration and
provide a second opportunity for F&I;
• ensure trade-in cars will be in
better condition, reducing reconditioning costs; and
• complement core VSC business,
not cannibalize it.
Q. How
does Trade Protection Plan by MAP drive repeat business and encourage customer
loyalty?
A. When
consumers trade in their car at the selling dealer, they are given a full
refund on the purchase price of the contract to apply to a new car lease or
purchase, regardless of how many times they used the benefits during the term
of the contract.
Q. Who is
the underwriter?
A. Trade
Protection Plan by MAP is insured by American Security Insurance Company (A+
rated by A.M. Best), part of the Assurant Group.
Contact
Information
Public Relations:
Lee Slaton
214-528-1668
or
EFG Companies:
Jeff Beaver
972-445-8336