The Warranty Group has claimed that its “first of its kind” hybrid warranty-service plan has gained interest from businesses both inside and outside the automotive sector.

Damian Tyler, head of business development (pictured) at the warranty specialist, said that interest in the product was already high from dealers ranging from franchise groups to independents and was also attracting attention from businesses outside the automotive sector.

“What we have is a product that we believe is very much in tune with the times,” said Tyler.

“Service Plus is designed to be sold either with a used car purchase or when a customer is paying for servicing and, as such, provides more sales opportunities than traditional warranties or service plans.

“It will be markedly effective in helping increase customer retention with owners of vehicles more than three-years-old. Workshop maximisation in this sector is going to be a key driver in maintaining profitability in 2018, we believe, and the product can drive this aim.”

Service Plus is designed to provide a complete aftersales warranty-service solution for used car owners. It covers any car to 10-years-old and is paid for as 10 equal monthly amounts.

The product was introduced on a trial basis last year and is already being offered by a major household brand.

Tyler added that, unusually, interest in Service Plus was being received from not just within the normal automotive arena. Several potential partners from outside the car industry with substantial customer bases were also expressing an interest in adding it to their product portfolio.

“This shows the extreme breadth of appeal of the product," he said. "There is a genuine feeling of momentum around it at the moment.”