Used car dealers move to longer warranties
New research has revealed an emerging trend among used car dealers to offer customers longer warranties.
Research carried out by JudgeService on behalf of RAC Dealer Network found that many used car dealers are now offering extended six-month warranties instead of the more typical three months.
It predicts this trend to continue with used car dealers offering even longer warranties in the future to reassure customers.
Lee Coomber, RAC client director at Assurant, which partners with the RAC in the aftersales sector, said: “Across the UK, we have more than 40 field agents who play a crucial role in helping each member of the RAC Dealer Network meet the needs of used car buyers by developing the most appropriate warranty proposition.
“Each field agent has been chosen for their experience in the used car sector and they meet with each dealer regularly to review performance and share best practice. It’s very much a process designed to build a mutually productive, long-term partnership.
“Their approach centres on asking the right questions. Are you offering the best products? Do you have a structured approach to selling them? Are your salespeople well trained? Is marketing material being used properly in the showroom and online? Is the supporting digital infrastructure being used to its full potential?”
Coomber continued: “However, what is often underappreciated is the need for dealers to make their warranty offering more dynamic and here field agents come into their own through their knowledge of the latest warranty trends appearing both nationally and locally.
“We continue to see a trend toward longer term, more comprehensive warranties, with many dealers moving from three months to six months, something we believe will probably evolve to 12 months in the medium term.
“The additional cost to the dealers of these upgrades is usually modest but offer the customer a much higher degree of reassurance.”
