Richard Matosky, president of Cascor Inc., said his company has been doing this since 1992.
After the fleet operator completes a repair, the paperwork is handed over to Cascor
, to check whether it's covered by warranty (or extended warranty), and if so, to submit the claim to the manufacturer.
No Sign of Extended Warranties?
Richard Matosky, Cascor
In all his
time in the business, though, Matosky
has yet to see what would be called an extended warranty or a vehicle service contract, at least in the form in which they are sold to passenger car buyers.
Yes, the truck and bus companies will sell extensions to their product warranties, but no, there is no room for third parties.
"I think it's due to the way vehicles are used on the commercial fleet side of things," he
Simply put, they're driven constantly, break frequently, and would be expensive to buy (especially if the customer is also performing the repairs).
And using outside labor is a non-starter for many fleet operators, for a variety of reasons.
"I'm not aware of -- although I'm sure they exist -- extended warranties/service contracts beyond what OEMs offer to their fleets," Matosky
And even those OEM-provided extended warranties are not runaway hits within his
customer base, he
Matosky noted that Cascor now has around 45 customers, consisting of major utilities and municipalities, that maintain and repair their own fleets of vehicles, but look to Cascor for help with the warranty claims paperwork.
And none seem to have an appetite to cover mechanical breakdowns with a service contract from a third party.
"If they purchase extended warranties, which most do not, it's directly from what the OEMs and the component manufacturers will offer at the time of vehicle purchase," he
But either because the OEM fears that the vehicles are going to be used in extreme conditions, or because the utility or the city believes it's more cost-effective to self-repair after the basic warranty expires, they usually don't purchase an extended warranty.
Becoming the Warranty Department
said Cascor functions much like the fleet owner's in-house warranty administration department would.
The main reason they outsource their warranty departments to Cascor
has to do with the diversity of their fleets, Matosky
"A utility can have upwards of four or five different OEMs," he
said, "which would require them to have in-house warranty administration resources on at least four or five different OEMs' policies and procedures -- how to properly identify, code, and properly submit to those OEMs.
"Our skills are in the evaluation of repairs that are done on a daily basis by a fleet, against the warranties that they purchased, and properly coding and submitting and reconciling those claims, so that a fleet can maximize the warranty recovery it's entitled to," Matosky
said there are still lots of fleets that do their own in-house warranty administration, and do it well.