DOWC can guide you on a path of building wealth and establishing the correct structure, ensuring compliance, considering all insurance options, and advocating for your access to capital. In addition to increasing profit potential on F&I sales, the ability to tailor and customize their own F&I offerings means a dealer can build a portfolio of F&I products that caters to a variety of vehicles. What Is a Dealer Owned Warranty Company? A dealer-owned warranty company is created when a dealer forms a completely separate c-corporation structure. It is made away from the dealership, for the purpose of writing service contracts. Being owned by the dealership, it becomes the obligated provider. An auto warranty is a contract to fix certain defects or malfunctions for specific amount of time after you buy a car. A manufacturer’s warranty typically is included in the purchase price when you buy a new car, but used cars might come with some type of warranty coverage, too.