MotorTrader Warranty Feature

Date: Fri 5th July 2013   |   Author: Natalie Ridgwell | Google+

Feedback from Nick Wake, AutoProtect 

 1. What advice would you give to franchised dealers on driving sales of warranties? How can warranties be used as a tool in the used car sales process?

 To be more active in promoting warranties as a way of differentiating the dealership and creating higher level of customer trust.

 Warranties help to increase the customer lifetime value, enhance CSI scores and aid retention. The move to longer new car warranties should not mask the wider business opportunity on used cars.

 The key for dealers in developing warranty sales is in promoting a high quality product range to every customer, to ensure warranty details are transparent (in the showroom and online) and to ensure customers have the opportunity to trade up or extend the warranty period.

 We see a trend for dealers to offer a longer used car warranty as standard in the purchase price. It differentiates their car pricing and demonstrates a commitment to the customer. This does not negate the opportunity to explain the product and to provide further upsell opportunities.

On occasion, some dealers worry that providing the customer with the information to help them to make an ‘informed decision’, risk the loss of a sale. We take the opposite view. Providing customers with the full picture underlines an ethical approach that creates value. Customers who trust a dealer are more likely to purchase a car and added value products. They are also more likely to recommend their dealer to family and friends. 

 2. Can you identify any trends emerging in used car warranties that are set to impact on dealers?

There is plenty of evidence that today’s customer is seeking convenience and certainty in their motoring. Falling levels of disposable income also mean they want to avoid unwanted repair costs.  The potential for such costs have increased with the new more stringent MOT standard introduced in March this year. 

Read the full story in the latest Motor Trader Issue.