Irvine, CA - The nation’s leading reinsurance management company for automobile dealers, Portfolio General Management Group, Inc., has launched the Portfolio Protection Certified Pre-Owned (CPO) Limited Warranty program in response to its dealers’ need for an alternative to factory-sponsored CPO warranties.
The warranty covers the powertrain components, including seals and gaskets, on each certified vehicle, and is given to the dealership’s customer free of charge at the time of sale. The term and mileage limits, such as 7 years/100,000 miles, match or exceed that of the manufacturer’s CPO warranty for each make and model. Eligibility requirements also match or improve upon the manufacturer’s. The vehicle must pass a comprehensive inspection of component systems to become certified.
The unique benefit of the Portfolio CPO is that the premium dollars set aside to pay for warranty claims will be held in the Portfolio dealer’s Affiliated Reinsurance Company (ARC) or Affiliated Risk-Transfer Company (ARTC). Contrarily, dealers who use a factory program send those dollars to a financial institution associated with the manufacturer, giving up control and the earned premium.
“We have listened to the market, and have provided another profitable solution for dealers who want to maximize the return on all activities in the dealership,” said Steve Burke, President of Portfolio. “The Portfolio CPO not only delivers value by itself, but improves penetration of VSC sales by helping the F&I department wrap the warranty with a matching service contract that provides Exclusionary coverage to the customer.”
Portfolio Protection CPO warranty claims will be administered by First Extended Service Corporation. The dealership’s risk is insured by Virginia Surety Company, Inc., rated A-(Excellent) by AM Best. Both companies are part of The Warranty Group, Inc. of Chicago, IL.
Portfolio has provided reinsurance management programs to automobile dealers since 1990, and over 3.5 million Portfolio vehicle service contracts have been issued. The company offers turnkey services for dealers to reinsure all risk-based ownership protection products sold in the F&I office. Portfolio is based in Irvine, CA and Dallas, TX.
For more information, contact Steve Burke 877.789.6200