My aging Saab burst a pipe the other day. A minor bump in the road I thought. But, for some reason motor vehicle repairs seem to conform to Drucker’s Law of Business Planning. Everything takes twice as long as expected. And costs twice as much. After handing over nearly four hundred dollars I was back in action. Slow, stately action, admittedly, but action nonetheless.
It got me thinking. Most kiwis have paltry amounts in their bank accounts. We have one of the worst savings records in the developed world. Think about it. How long could you survive if your income stopped - as of now?
So, when is a good time for car repairs?…
Well, the answer is plainly - never.
So, why not set up a business that allows people to put aside a regular amount by automatic payment into an account for unexpected repairs? Like a Christmas Club. The owner of the account can establish an amount at which point the accumulated funds can be capped and the surplus returned either in cash or as vouchers for motoring stuff, fuel etc. The fund could also be accessed to pay the excess in insurance claims.
The programme could be sold by MTA members or the AA. Participating repairers (mechanics, auto electricians etc) would benefit from the club network.
The risk to the fund holder is nil, it profits from the interest and, perhaps a commision from participating repairers on the sale.
Marketing happens at grass roots. At point of sale, caryards, workshops, petrol stations ...?
Is there a market? Well, we have a lot of cars on the road…
Over to you…an open source idea.