JM&A Group has begun to sell warranties on used electric vehicles and rebranded other finance and insurance products, such as guaranteed asset protection, with the term "EV."
The strategies announced this fall stemmed from dealership demand for used EV warranties and JM&A's view that identifying F&I products as EV allowed for better conversations between F&I managers and customers, Josh Bass, vice president of innovation for the company, told Automotive News.
Bass said dealerships had begun to see more used EVs and sought a guarantee they could apply to that inventory for customer peace of mind. So the F&I product provider added used EV warranties to its portfolio of warranty options for used internal combustion engine models.
"This came really from direct feedback from our dealers," said Bass.
He called the warranties "really exciting" and said JM&A felt they were the most comprehensive option on the market.
Dealers can purchase one of two used EV warranties. A bumper-to-bumper version protects the first 12 months/12,000 miles on vehicles from the current model year and the previous nine, so long as they have 100,000 or fewer miles. The other option has similar terms but protects the powertrain only.
JM&A offers a similar choice between all-inclusive and powertrain warranties for internal combustion vehicles, though Bass said more variations are available for the length of coverage — anywhere from a month to a lifetime. Bass said JM&A felt 12 months/12,000 miles represented the "sweet spot" for used EV protection and a way to enter the market now. He didn't rule out offering other durations later.
"As we learn more about the needs of our dealers, we might consider different lengths," Bass said.
The warranties carry the EV+ Protect brand name, as do any of JM&A's F&I products applied to an electric vehicle. JM&A hasn't changed any of those products, just renamed them.
Customers have many questions about a vehicle with a different powertrain, and they want to protect their investment just as they would with an internal combustion model, Bass said. Branding F&I coverages as EV+ Protect helps foster a conversation between the dealership and consumer.
Customers feel they are purchasing a product targeted to their vehicle, are able to have their concerns addressed and can "better understand what's important to protect their investment," Bass said.
F&I coverage related to tires might deserve that EV distinction more than one would expect.
Bass said data suggests EVs' heavier weight makes tire wear a greater consideration. They might need more frequent replacement, he said.
Jeremy Robb, Cox Automotive senior director of market insights and business solutions, also mentioned EV tires while discussing residual value at the Auto Finance Summit in Las Vegas in October.
"When [EVs] come back 3 years old, they rip through tires," Robb said, attributing that to the vehicles' torque.
Bass said JM&A is monitoring the subject of EV tires as it relates to maintenance and "future product opportunities."
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.
