Ally Financial announced today that ClearGuard, which provides protection coverage of up to $2,500, is now standard on all eligible vehicles dealers sell via its online wholesale vehicle auction platform SmartAuction. This news comes on the heels of this week's National Remarketing Conference, presented by SmartAuction, and part of Used Car Week.
Almost all dealer-owned vehicles with a sticker price less than $75,000 are eligible for the ClearGuard coverage, according to Ally.
With the additional protection, the company said dealers using SmartAuction can avert potential unexpected costs associated with the time of arbitration for minor damage or misrepresentations.
“Dealers want to sell their vehicles without worrying about the cost and hassle of a potential arbitration case over minor damage that might have been missed at inspection and our buyers want to be sure they are getting the vehicles in the condition they thought they were getting," Ally specialized asset management vice president Steve Kapusta said in a news release. “With ClearGuard, we're able to minimize the risk by protecting dealers on most items that lead to disputes and arbitration.”
Dealers can post a vehicle on SmartAuction for free, but a standard $200 fee is charged once a vehicle sells and ClearGuard is automatically included.
All arbitration claims up to $2,500 can be covered with ClearGuard.
Standard arbitration guidelines apply to both ineligible vehicles and claims over $2,500.
“This is another benefit of having the breadth of products and expertise that Ally offers,” said Doug Timmerman, president of Ally Insurance, which delivers the ClearGuard coverage. “We listened to dealers, and with an unrelenting focus, found a way for our SmartAuction and Insurance teams to develop a product that helps dealers and enables vehicles to move through the sales process faster.”