In times of economic stress, a used-truck warranty can serve as an "asset value multiplier" and help used truck owners derive enhanced value and increased profitability from their trucks, according to National Truck Protection (NTP, Inc.), a North American independent provider of warranty and service contracts to the trucking industry. An asset value multiplier is defined as an item that increases the value of an asset you already own.

"Used-truck warranties are classic examples of asset value multipliers," said Robert Amico, president of NTP and author of Inventory Profit Optimization a discussion on how to increase gross profits utilizing Asset Value Multipliers.

"When a used-truck owner or reseller adds a warranty to their truck, the real value of the truck becomes higher than that of a comparable vehicle that does not have a warranty. This holds true for as long as the warranty is in effect. Dealers can move trucks off the lot with greater turn velocity, which is of particular importance in a down economy. And used truck owners with warranties know they have an asset with higher resale value."

NTP, Inc. has been providing warranties, which hold NADA book value, to the used-truck industry for more than 25 years, through both prosperous and challenging economic times. Used-truck dealers that purchase NTP warranties significantly increase the intrinsic value of the trucks in their inventory and have an easier time moving vehicles off the lot. This is because the buyer of a truck with an NTP warranty understands that they are getting the highest level of protection and support, allowing them to resolve any issues with the truck quickly and without significant interruption to their business.

"We have found, quite simply, that buying an NTP warranty is an investment that very quickly pays for itself. This evaluation does not even take into account the amount of repeat business a dealer can earn by selling a product that comes with the ironclad protection offered by an NTP warranty," Amico continued.

A recent evaluation by NTP suggests that dealers who add NTP warranties to their trucks can increase the value of their inventory by as much as twenty-five percent, meaning that an NTP warranty as a multiplier value of 0.25. A used truck dealer can sell 20-percent fewer vehicles with warranties while still generating the same profits had all vehicles been sold without a warranty. The NTP white paper delves deeper into this and other statistical evidence supporting the profit optimization qualities of a used-truck warranty.

"Buyers today are thinking long and hard and scrutinizing their options before making any purchasing decision, whether it is a used truck, real estate or even office furniture. With an NTP warranty in tow, a used truck dealer can be confident that they hold a significant competitive edge in the market, helping them to optimize profits. Not only is their inventory likely to move off the lot faster, they are likely to earn a higher price."