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Reassuring warranty buyers with a Code of Practice

Paul Newton, Chief Executive Officer of Car Care Plan, writes:

Over seven million cars change hands every year – that’s a lot of customers to keep happy and, personally, I think we do a pretty good collective job. Our market has taken huge steps forward in recent years and the introduction of a Motor Codes Code of Practice for used car retailers added even more credibility to those improvements, differentiating between dealers who treat customers fairly and those in it for a quick buck.

Subscribing to a Code of Practice helps customers identify responsible business operators, it helps them build trust and, ultimately, raises satisfaction levels and retention. I’m absolutely convinced voluntary commitments raise standards of service and provide buyers with extra layers of protection without them having to resort to regulatory bodies.

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Is your business signed up to the Code of Practice?

Motor Codes is a government-backed, self-regulatory body for the motor industry. It has thousands of voluntary members, all committed to providing the highest standards in the administration of warranties, services and repairs. The reassurance Motor Codes membership affords businesses shouldn’t be underestimated. Putting your heart on your sleeve and showing buyers you mean business is a potent symbol of confidence and one that brings buyers back time after time. Not all warranty providers subscribe to Motor Codes but I wish they would.

Promotions can have all the spin and gloss you like but words are cheap and, without the assurance of a viable Code of Practice, they mean nothing to buyers if you’re not prepared to be held to account more formally. At Car Care Plan, we’ve been working with Motor Codes for some time and I’m proud that we not only subscribe to their Code of Practice for Vehicle Warranty Products but our products are fully compliant. It doesn’t change what we do day to day but subscription lets us make a very public commitment to buyers of our product.

If your warranty product isn’t accredited with the Motor Codes Code of Practice, ask your provider why not or when it will be. Then ask yourself whether you’d buy a product that wasn’t accredited while the offer down the road was approved.

Why is the Code important for warranty providers?

Warranty is a major selling point for any vehicle – new or used. We all know from talking to buyers they have high standards when it comes to buying a car and warranty is usually top of their list. Gone are the days when it’s seen as a nice to have – today it’s an essential element of any deal.

Offering warranty provides peace of mind and reassurance. If a customer tells you they’ll be keeping their car for three years, extended warranty provides cover for the lifetime of their ownership of that vehicle. Not only that, but it has proven 10x more effective at boosting retention, ensuring those customer bring the repair work back to your service bay, offering further income. For customers, it provides financial support should mechanical or electrical faults occur. It’s a win-win situation.

If warranty is so high on a customer’s wish list when buying a car, providing the extra assurance of their dealer being a subscriber to the Motor Codes Code of Practice can only add confidence in their decision to buy. They know they will be getting a first rate service – and that’s exactly what drivers are looking for.

To learn more about the benefits of warranty for customers and dealers, as well as tips on boosting sales, download our free eBook: Complete guide to warranty.

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