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Extended Warranties for New and Used Cars in Europe
Extended Warranties for New
and Used Cars in Europe
Report Prospectus
January 2011
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
1
Extended Warranties for New and Used Cars in Europe
Prospectus contents
Page
What is the research?
What is the rationale?
How do dealerships surveyed break down?
Which manufacturer brands have been investigated?
What is the report structure?
What are the key features of the research?
How can the research be used?
How can the PartnerBASE™ be used?
Who can use the research?
What are some of the key findings?
What is the cost and format?
How can the research be purchased?
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Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
2
Extended Warranties for New and Used Cars in Europe
What is the research?
Finaccord’s report titled Extended Warranties for New and Used Cars in Europe amalgamates
comprehensive and in-depth research covering 26 countries in Europe, namely: Austria, Belgium,
Bulgaria, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland,
Italy, Norway, Netherlands, Poland, Portugal, Romania, Russia, Slovenia, Spain, Sweden,
Switzerland, Turkey, the UK and Ukraine.
Based on a survey of 1,385 dealers in these countries and an investigation typically covering
between 30 and 40 automotive brands in each territory, the study delivers unique insights into the
market for extended warranties for new and used passenger cars bought by consumers. Moreover,
the research also generates data describing the size, in terms of gross written premiums and other
revenues, for the market for extended warranties for new and used cars in each country.
In addition to this unique market data, the survey results are also used to measure the extent to
which automotive dealers and manufacturer brands actually organise and intermediate extended
warranties in each country, to calculate average customer take-up rates for extended warranties at
the point of sale, and to understand relationships between manufacturers or importers and external
warranty providers for branded or endorsed programs.
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
3
Extended Warranties for New and Used Cars in Europe
What is the rationale?
The automotive manufacturing market, globally as well as in Europe, has long been highly cyclical
and prone to low or non-existent profitability as a consequence of the tough competition that exists
between manufacturers. The economic crisis caused car sales to drop sharply in many countries,
and established European and US manufacturers face a new challenge from Chinese and Indian
groups.
As a result, a key issue for automotive manufacturers is to increase the value of revenues that they
extract from customers through the provision of ancillary services, including extended warranties.
Furthermore, the thin margins that car dealerships and importers can secure on vehicle sales in
isolation can be boosted by cross-selling related services, most importantly financial services such
as extended warranties.
The market for extended warranties for new and used cars, which Finaccord’s research indicates to
be worth about EUR 3.18 billion in gross premiums and other revenues across Europe, is therefore
a significant battleground. This study and its accompanying PartnerBASE™ database represent
systematic, published research on the subject across Europe providing unrivalled insight about it.
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
4
Extended Warranties for New and Used Cars in Europe
How do dealerships
surveyed break down?
Germany, 7.2%
France, 5.8%
Bulgaria, Croatia, Finland
Ireland, Norway, Romania,
Slovakia, Slovenia, Ukraine,
all 2.9%
Italy, 5.8%
Volkswagen, 17.0%
Multi-marque, 30.0%
UK, 5.8%
Renault Nissan, 8.7%
Spain, 5.1%
Sweden, 4.0%
Peugeot Citroën, 7.9%
Other groups, 5.9%
Suzuki, 1.4%
Honda, 1.4%
Hyundai, 2.1%
Mercedes-Benz, 2.3%
BMW, 2.7%
Fiat, 4.0%
General Motors, 6.3%
Toyota, 5.2%
Ford, 5.0%
Austria, Belgium, Czech Republic, Denmark, Greece, Hungary,
Netherlands, Poland, Portugal, Russia, Switzerland, Turkey, all
3.6%
Finaccord’s universe of dealerships includes 1,385 respondents in total spread across 26 countries in
Europe including manufacturer-owned dealerships, franchised dealerships, multi-marque dealerships
and new and used car supermarkets. For a full list of the organizations contacted for the research and
included in PartnerBASE™, please contact Finaccord.
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
5
Extended Warranties for New and Used Cars in Europe
Which manufacturer brands
have been investigated?
Manufacturer brands investigated through the local offices of the manufacturers themselves or those
of their importers in at least one of the countries covered in this report are as follows:
AIXAM
Alfa Romeo
Aston Martin
Audi
Bentley
BMW
Cadillac
Chery
Chevrolet
Chrysler
Citroën
Dacia
Daewoo
Daihatsu
Dodge
Ferrari
Fiat
Ford
Gaz
Geely
Great Wall
Honda
Hyundai
IKCO
Infiniti
Isuzu
Jaguar
Jeep
Kia
Lada
Lancia
Land Rover
Lexus
Lifan
Maserati
Mazda
Mercedes-Benz
MG
MINI
Mitsubishi
Nissan
Opel
Peugeot
Porsche
Proton
Renault
Reva
Saab
Seat
Škoda
Smart
SsangYong
Subaru
Tata
Toyota
UAZ
Vauxhall
VAZ
Volkswagen
Volvo
ZAZ
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
6
Extended Warranties for New and Used Cars in Europe
What is the report structure?
0. Executive Summary: providing a concise evaluation of the principal findings of the report.
1. Introduction: offering a rationale, a detailed description of methodology and definitions.
2. European Overview: comprising an overview of the market for extended warranties for new and
used cars across the 26 countries. Analyses include: trends in sales of new and used passenger
vehicles; comparison of key metrics describing the behaviour of dealers in this market; comparison
of average customer take-up rates for point-of-sale extended warranties; and calculation of the
market size, in terms of gross written premiums and other revenues in each country, for extended
warranties for new and used cars in Europe.
3. Austria: an in-depth analysis of the market for extended warranties for new and used cars in
Austria including: an overview of the market for new and used passenger cars; dealer survey
results including analysis of the use of extended warranty programs branded or endorsed by
manufacturers as opposed to policies provided by independent warranty providers; and
manufacturer / importer survey results, including identification of partners used for branded or
endorsed extended warranty schemes.
4 - 28: the other 25 countries (for all, contents as for Austria).
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
7
Extended Warranties for New and Used Cars in Europe
What are the key features of the research?
Key features of this report include:
• comparable and standardised data concerning extended warranties for new and used cars
covering a total of 26 countries in Europe ranging from mature territories, such as France and
Germany, to fast-developing markets, such as Russia and Turkey;
• provision of hitherto unpublished market size and segmentation data for all of these markets
generated from Finaccord’s proprietary European Automotive Financial Services Model;
• analysis of the average number of providers of extended warranties used by dealers and the
degree to which they collaborate with non-captive companies in addition to captive partners;
• in both the report and the accompanying PartnerBASE™ database, identification of both leading
and secondary non-captive providers of extended warranties used by dealerships;
• in both the report and the accompanying PartnerBASE™ database, identification of partnerships
between manufacturers or importers and external companies for branded or endorsed extended
warranty schemes.
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
8
Extended Warranties for New and Used Cars in Europe
How can the research be used?
You may be able to use this report and the PartnerBASE™ that accompanies it in one or more of
the following ways:
• understand the current size and future potential of the market for extended warranties for new and
used cars on a Europe-wide basis;
• appreciate the extent to which dealerships favour promoting extended warranties as opposed to
other ancillary automotive financial services such as creditor insurance and GAP insurance;
• benchmark the degree of competitive intensity recorded by the research for distributing extended
warranties through the point of sale;
• evaluate the potential for establishing partnerships with automotive brands or their local importers
for branded or endorsed extended warranty propositions;
• track the involvement in this field of leading national and international competitors including
CarGarantie, Europ Assistance, eurotax Garantie, MAPFRE Asistencia, Marsh, Mondial Assistance,
QBE, RAC, Real Garant and The Warranty Group.
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
9
Extended Warranties for New and Used Cars in Europe
How can the PartnerBASE™ be used?
Filter by group
Identify product
partners
Select country
Brand
Group
Country
Škoda
Smart
SsangYong
Subaru
Suzuki
Volkswagen
Daimler
SsangYong
Fuji Heavy Industries
Suzuki
Czech Republic
Belgium
Switzerland
Germany
Austria
EXTENDED WARRANTIES
Product offered? Operating model Partner(s)
Look up
specific brands
Yes
Yes
Yes
Yes
Yes
Single partner
Single partner
Single partner
Single partner
Single partner
CarGarantie
CarGarantie
CarGarantie
CarGarantie
CarGarantie
Choose operating model
Note: for this report, PartnerBASE also covers 1,385 dealerships
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
10
Extended Warranties for New and Used Cars in Europe
Who can use the research?
1.
Automotive manufacturers: this research provides a wealth of unique and valuable
benchmarking data allowing you to assess objectively the status of extended warranties for
new and used cars on a Europe-wide basis;
2.
Underwriters and administrators of extended warranties: what are the opportunities to increase
or build market share within the extended warranty markets of each country by means of
distribution alliances with manufacturers, importers or dealers?
3.
Finance and leasing companies: in some countries, it is common for extended warranties to be
embedded in consumer finance and leasing packages hence it is important for providers in
these areas to comprehend fully the apparent opportunities;
4.
Management consultancies: are you helping a manufacturer or warranty provider with its
strategy or evaluating how it can develop its business in extended warranties for new and used
cars in Europe? Understand the current status of this market across 26 countries, saving time
and effort on researching the subject yourself.
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
11
Extended Warranties for New and Used Cars in Europe
What are some of the key findings?
1.
Across Europe as a whole, 54.5% of manufacturer brands surveyed were marketing
extended warranties to their customers in 2010, up significantly from 41.5% in 2007
78.0%
86.1%
57.1%
37.5%
58.8%
8.8%
11.1%
92.5%
90.2%
61.8%
81.8%
16.7%
82.1%
74.3%
9.4%
61.1%
83.3%
48.6%
14.0%
73.5%
76.3%
36.1%
36.1%
56.1%
85.0%
0.0%
54.5%
Austria
Belgium
Bulgaria
Croatia
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Netherlands
Norway
Poland
Portugal
Romania
Russia
Slovenia
Spain
Sweden
Switzerland
Turkey
UK
Ukraine
Average
0%
20%
40%
60%
80%
% of manufacturer
brands with extended
warranty schemes
100%
Source: Finaccord Automotive Financial Services in Europe Survey
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
12
Extended Warranties for New and Used Cars in Europe
What are some of the key findings? (cont.)
2. Most manufacturer brands in Switzerland offer extended warranties with
provider mandates split between three main external warranty firms
% of manufacturer brands offering extended warranties and operating model
100%
No
80%
Other,
14.7%
Internal
Multiple partners
60%
Yes
40%
Weighted provider share of partnerships
Single partner
Toyota
Group,
7.4%
Euro
Garantie,
9.9%
20%
Euro
Garantie,
Quality 1,
14.9%
0%
Product offered?
Quality 1,
27.0%
Car
Garantie,
26.1%
Operating model
Source: Finaccord European Automotive Financial Services Survey
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
13
Extended Warranties for New and Used Cars in Europe
What are some of the key findings? (cont.)
3. In Turkey, sales of used cars have accelerated away from sales of new
cars providing food for thought for extended warranty providers
Passenger car parc and new / used passenger car sales (million)
10
0.60
Used car sales
8
0.48
6
0.36
New car sales
4
0.24
Car parc
2
0.12
0
0.00
2006
2007
2008
2009
2010
Source: ACEA, Otomotiv Sanayii Dernegi, Finaccord estimates
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
14
Extended Warranties for New and Used Cars in Europe
What are some of the key findings? (cont.)
4. Key findings from the executive summary include:
• the market for extended warranties for passenger cars in Europe is worth in the region of EUR
3.18 billion in terms of gross written premiums, with Germany, as might be expected, the largest
market;
• Finaccord’s research indicates that the extended warranty markets of specific countries have very
different levels of development when measured as a percentage of the value of underlying sales of
new and used cars to consumers through dealerships;
• by this measure, and across new and used cars combined, revenues for extended warranties
were worth 1.43% of the value of car sales in the most developed market in 2010 in comparison to
the European weighted average of 0.86%;
• as a consequence of rising rates of provision among dealerships and a higher incidence of
manufacturer-branded extended warranty programs, Finaccord believes that the market value is
likely to exceed EUR 3.25 billion in 2011 or 2012.
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
15
Extended Warranties for New and Used Cars in Europe
What is the cost and format?
Extended Warranties for New and Used Cars in Europe is available as a standard Adobe Acrobat
PDF document and / or hard copy. The PartnerBASE™ that accompanies it at no further charge is
in Microsoft Excel format. Costs for this research set and other titles in the pan-European
automotive financial services series are as follows:
REPORT
COST *
FORMAT
Extended Warranties for New and Used Cars in Europe
£2,495
c. 240 pages
Automotive Finance and Leasing in Europe for Consumers in Europe
£2,495
c. 365 pages
Consumer Automotive Financial Services in Eastern and South-Eastern Europe
£2,495
c. 330 pages
Consumer Automotive Financial Services in Northern and Central Europe
£2,995
c. 420 pages
Consumer Automotive Financial Services in Southern and Western Europe
£2,995
c. 380 pages
Manufacturer-Branded and Dealer-Intermediated Motor Insurance and Road Assistance in Europe
£2,495
c. 360 pages
For UK-based clients, VAT at the prevailing rate will be added to the basic price.
Costs quoted are for a single site user licence only.
For a corporate user licence, please see the next slide for further details.
Invoices can be paid in EUR, at the prevailing exchange rate, if preferred.
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
16
Extended Warranties for New and Used Cars in Europe
How can the research be purchased?
Simple. Just go to the relevant area of the Finaccord web site available
www.finaccord.com/order_eu_afsr.htm and fill in the online order form, clearly indicating:
• report required
• type of corporate user licence, if required *
• billing name
• address and e-mail address
• purchase order number, if applicable
at
Please allow up to one working day for the delivery of electronic copy by e-mail.
* For the corporate user licence please choose one of the following options:
1. One office, one country: no supplement over and above basic cost of reports ordered
2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered
3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered
4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered
VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.
Expertise in financial services
© Finaccord Ltd., 2011
Web: www.finaccord.com. E-mail: [email protected]
17