Volkswagen will launch its new used-car warranty program dubbed “WorldAuto” this October as part of its campaign to sell at least 800,000 vehicles in the U.S. VW is relying on this program to help dealers sell the conquest trade-ins. The program extends a limited one-year, 12,000-mile warranty for the non-VW makes and models. It originated from a program started two years ago in Europe. He said that there would be more conquest trade-ins to be moved from its lots. R.L. Polk & Co. said that last year, the number of new buyers from its rival brands has increased by 21% compared to the prior year. The VW’s year-over-year increase in 2008 was just 7%.
VW launched a pilot gram last February at 20 of its dealerships in the U.S. Joe Gunther, a VW dealer, was thankful about this move, saying that there would be more trade-ins when they get to the 800,000 figure in the U.S. He added that not all of them could be offered wholesale. The limited warranty covers certain engine and transmission repairs, as well as those involving the air conditioning and the suspension.
Buyers also get roadside assistance. The program only includes those vehicles that have fewer than 75,000 miles on the odometer. Scott Weitzman, general manager of used-vehicle operations for the VW brand, said that the cars have to be no more than six years old. To be certified in the UK, the vehicles have to pass a 112-point inspection. This move is somewhat of a departure in how dealerships handle used-car sales. Most of its dealerships consider used-car sales to be a highly lucrative part of business.