The growing importance of a good warranty on reputation

Date: Wed 8th May 2013   |   Author: Modeten

The value of a good quality warranty has increased as the Citizens Advice Bureau highlight that they receive more complaints about used car retailers than any other type of seller. A warranty cannot overcome a poor vehicle or poor service, but the right product, correctly explained provides important reassurance for buyers.

“Integrity is a vital part of the extended warranty. Customers need to know in plain English what is covered and for how long. It is vital to tailor a suitable product to meet the customer’s expectations in order to create a long-term customer which therefore enhances reputation” Noted AutoProtect’s Nick Wake.

The importance of a good used car warranty correctly explained should not be over-looked. A shortage of used cars is driving up demand for older, higher mileage car, which inevitably may be more susceptible to breakdowns. Whilst an extended warranty inherited on a used car may not be appropriate to the needs of the buyer.

“A warranty well presented speaks volumes for a dealers commitment to their customer. A 12 month warranty, as opposed to 3 months is more likely to create real customer confidence. We consistently see that the end customer is happy to pay for the extra peace of mind of an extended period, of say 36 months cover, and now we see more dealers offering this as their standard, either selling or building the cost into the overall customer package.”  Concluded Wake.

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