8:06 am, September 17, 2026
For too many dealers, warranty sits firmly in the cost column.
It’s something they feel they have to provide with a vehicle – another expense to absorb into the deal and another few pounds taken away from an already pressured margin.
But that overlooks one of the biggest opportunities warranty can offer.
Handled correctly, warranty doesn’t have to be a cost at all. In fact, it can become a profit centre.
At Warranty Solutions Group (WSG), we see a significant change once dealers achieve around a 45% warranty upsell rate. At that point, the income generated through upselling longer-term cover can offset the cost of the warranties provided across their vehicles – and the dealer starts moving into profit.
The question, therefore, isn’t simply: ‘What is my warranty costing me?’ It’s: ‘How can I make my warranty work harder for my business?’
Start the conversation earlier
One of the biggest mistakes dealers make is leaving warranty until the end of the sales process.
By that stage, the customer has already made numerous decisions, discussed finance, agreed a part-exchange and worked through the numbers. Warranty can then feel like another product being added onto the deal.
Instead, introduce it much earlier. When discussing the customer’s part-exchange, for example, there is a natural opportunity to talk about their experience with the vehicle. Have they had any expensive repairs? How long have they owned it? What has it cost them to maintain?
That creates a genuine conversation about the realities of vehicle ownership – and provides a natural introduction to the protection available with their next car. Warranty then becomes part of the vehicle proposition rather than an afterthought.
Don’t just sell the warranty – demonstrate its value
How warranty is presented matters just as much as when it is introduced. Simply asking, ‘Would you like to extend the warranty?’ gives the customer very little reason to say yes.
Instead, dealers need to explain the features and translate them into meaningful customer benefits.
WSG’s car warranties for example cover 6,000 mechanical, electrical and electronic components, alongside benefits such as wear and tear cover, and diagnosis costs.
But features are only part of the conversation. Customers also want confidence that the product will deliver when they actually need it. That’s where proof points become incredibly powerful.
Since launching in 2021, WSG has paid £30.9m across more than 57,000 approved warranty claims. The business has also accumulated thousands of five-star customer reviews across Feefo, Trustpilot and Google, with an average rating of 4.8, and has won more than 30 awards.
These aren’t simply corporate statistics. They’re evidence that salespeople can use to give customers confidence in what they’re buying.
Rather than saying, ‘Would you like a three-year warranty?’, the conversation becomes about comprehensive protection, proven claims support, highly rated customer service and the reassurance of choosing a multi-award-winning provider. That is a much stronger value proposition.
Change the mindset
Dealers should also look beyond the warranty itself when assessing cost.
In the last six months alone, WSG’s Prep4Less programme has generated more than £160,000 in vehicle preparation and repair savings for dealers, including over £7,700 on a single replacement engine.
It all comes back to the same principle: warranty shouldn’t simply be viewed as a cost of selling a vehicle.
Introduce it earlier, communicate the features and benefits properly, back the proposition with credible proof points and create a consistent upsell process, and warranty can protect the customer while generating incremental profit for the dealership.
For dealers operating in a market where every pound of margin matters, reaching that 45% tipping point could completely change the warranty conversation.
- W: warrantysolutionsgroup.co.uk
- T: 0800 060 8610
- E: [email protected]
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