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Extended warranty – is your dealership providing them?

The long-term benefits of extended warranties are obvious to customers and to your business, but not all dealers are giving buyers the option of extending their warranty when they buy – and they’re missing out on a golden opportunity. Are you sure you’re doing everything you can to provide buyers with the options available to them?

Customers like options. They understand what a car warranty can do for them and what it provides – so giving them the opportunity to select a longer-term, more comprehensive product that’s in line with their vehicle ownership period is a simple solution to providing a better service and boosting retention.

Learn more about vehicle warranties in our FREE eBook: Complete guide to Warranty.

Who are warranty customers?

“Almost every customer – from full-time workers to retired people – relies on warranties to protect them when faults arise,” writes Tim Heavisides, Chief Executive of Car Care Plan, in our latest eBook.

Many dealers still settle for providing warranty within the screen price of a used car – overlooking the fact that customers could extend cover to protect them well into ownership of the vehicle. If customers don’t know they could extend their cover, they’re unlikely to ask for a longer warranty period. The scope for improvement is huge and the scope for customer and dealer benefit is enormous.

Providing a first-class warranty product will ensure customers can protect their new or used vehicle. Why risk them going elsewhere when warranties are so effective at boosting retention – more than 10 x as effective as service plans.

The benefits of selling vehicle warranty

Beyond customer retention, vehicle warranties provide wide benefits for both dealers and customers. They are a major selling point for any vehicle – whether new or used – so it pays to know and understand the advantages.

Benefits for customers:

• Peace of mind
• Financial protection in the event of a mechanical or electrical fault
• An ongoing relationship with their dealership
• A choice of repairers – including overseas
• No restrictions on the number of claims
• Use of genuine parts

Benefits for dealerships:

• Increased routes to market and revenue streams
• Additional sales opportunities
• A wider product range
• Greater customer retention rates
• Better satisfaction ratings
• Transfer of risk to an external party.

If you would like to know more about Car Care Plan vehicle warranty CONTACT US today.

Look out next week for the latest blog in the Consumer Rights Act series, or sign up to our newsletter at the bottom of this page, for more information, advice and guidance on how the new Consumer Rights Act affects provision of services. You can read the first two blogs in this series here:

• Are you ready for the Consumer Rights Act 2015?
• How the new Consumer Rights Act affects motor dealers