PALISADES PARK, N.J. — OSC Omega Service Corp. has launched Vehicle Repurchase Guaranty, a program designed to allow dealers to provide a buy-back guaranty to retail customers. The company stated that several major dealer groups and lenders have already signed up.
"Given the overall condition of the economy, we strongly feel that this is the right product at the right time," said Gerald Zipper, president of OSC and a former state insurance commissioner.
OSC is known for its Auction Vehicle Repurchase Guaranty program, which offers a similar guaranty for wholesale auctions. Performance of the guaranty is insured with a major "A" rated insurer licensed in all the states, and no insurance license is required for the selling dealer, according to the company.
After a short initial waiting period, the customer can call in a repurchase request to the plan administrator and arrange to have the vehicle inspected locally by a national inspection service, at no cost to customer, after first offering the car to the selling dealer as a trade-in. If the vehicle has suffered no material damage, the customer will be offered a buy-back price, equivalent to 95 percent of that day's Black Book trade-in value, adjusted for mileage and condition. A check will then be sent directly to the customer within a few days.