Car warranties more ‘satisfying’
Dealers are becoming much better at satisfying customer demands for longer and more comprehensive used car warranties, according to the RAC.
The research highlights how better structured sales processes and more effective training alongside better marketing means that warranty opportunities are closer to being maximised.
Sean Kent, director, corporate and independent dealers at The Warranty Group, the RAC’s partner in the dealer sector, said, ‘Really, ever since the credit crunch, we have seen an ongoing demand for longer and more comprehensive warranty upgrades from used car customers.
‘However, some dealers were relatively poor at meeting this need, which was frustrating, despite the best efforts of warranty providers such as ourselves. The reasons for this were complicated and mainly based around the need to fit so many different elements into the used car sales process.
‘What we have seen over the last couple of years is this problem really start to disappear. More and more dealers have started to view the used car as a proposition rather than just a product and, as a result, have looked again at how they are selling warranties. They have started to really satisfy the demand.
‘The fact that more are being sold is good for customers and good for dealers. There is a definite customer requirement there and, of course, the sale provides a profit opportunity for the dealer alongside the possibility of building a longer term relationship with the consumer.’
Sales of RAC-branded warranties had increased by 36% so far this year compared to the same point in 2015.