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Data Approach Offers Broad Portfolio of Warranty Options

Gustavo Cano - GarantiPLUS
General Manager Colombia

STORY INLINE POST

Rodrigo Andrade By Rodrigo Andrade | Journalist & Industry Analyst - Mon, 01/23/2023 - 08:41

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Q: With the second-hand market growing in relevance, how has GarantiPLUS Colombia adapted to take advantage of this trend?

A: We first opened our doors in the used-vehicle market but the demand in the retail and aftersales markets allowed us to expand into these two areas. About 20 percent of our contracts are now made through distributors and we handle preventive maintenance and warranty services through their workshops. 

Our operations in the areas of used vehicles, workshops and new vehicles are entirely different from each other, so it has been critical for us to understand the opportunities related to each. For example, we work with 5 percent of the total vehicles sold by distributors, ensuring between 30 and 40 vehicles per month. 

Q: What are the differentiating characteristics of GarantiPLUS Colombia when compared to other businesses in the sector?

A: We have four competitive advantages that no other company in Colombia has: unlimited mileage warranties, unlimited claims during the duration of the contract, no deductibles on any type of vehicle and coverage of every type of vehicle. 

We play a key role for those who want an extended warranty after the original expires. Our offer is attractive because we are the only company in the country that gives clients the option of renewing their contract for up to four years. 

Q: How does the company use data to offer customers better service and deals?

A: We are part of a business group with 10 companies, all of them in the automotive industry. This partnership allows us to collect valuable information to make the best decisions and create the best strategies for our clients. Besides this, we have created an alliance with all our distributors to provide constant support and training to commercial agents. This alliance has given us an advantage over the competition, which usually does not have a physical presence at dealerships. 

Q: How have GarantiPLUS Colombia’s services adapted to the growing demand for electric and hybrid vehicles?

A: Colombia has bet on renewable energy, especially Medellin and Bogota. These cities have implemented different programs to support electromobility through public initiatives that seek to boost the acquisition of electric and hybrid vehicles. These programs are also gradually building the necessary infrastructure so the country can have a smooth electromobility transition.

We have warranties for all types of vehicles, including ICE vehicles and cars with converted engines that use natural gas, thanks to our broad service portfolio. 

Q: What are the main differences between the business model in Mexico when compared to other Latin American markets like Colombia?

A: In Colombia, the license plate of a vehicle remains the same during all the years that it is in circulation, making the process to buy and sell vehicles clearer. Moreover, every person in Colombia has access to the centralized database that tracks all the activities related to vehicles, allowing companies in this line of business to have certainty of the vehicle’s history and giving clients the certainty that they will receive a high-quality product. For that reason, e-commerce marketplaces like Kavak and OLXAutos are shifting their business model and becoming more like traditional retailers. 

Q: What are GarantiPLUS Colombia's objectives for next year?

A: We forecast to have between 500 and 600 monthly warranty contracts and are working to open a new business channel with the three most import importers in the country, which will allow us to be the official warranty of these brands. This would help us have direct contact with the most important automotive companies in the country, which we already have in Mexico thanks to the five-year warranty GarantiPLUS offers with Mitsubishi. 

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