MORE THAN three-quarters of used-car owners have never bought warranty cover – and nearly 40 per cent cite cost as the main reason.
Many respondents (28 per cent) of the survey from Allianz Global Assistance UK believe committing to regular servicing means a warranty is unnecessary, and almost a third (32 per cent) feel they would rather ‘take a risk’ than pay up front for cover.
With more than 30 million cars over two years old on the UK roads, a figure which is predicted to rise, Allianz Global Assistance believes manufacturers and dealers are missing out on significant opportunities.
High-quality training for sales executives should focus on how to educate used car owners of the benefits of extended warranty programmes, as well as how to take advantage of an up-sell opportunity.
When asked to pick the three most important aspects of a warranty package, if they were to buy one in the future, 77 per cent of used-car owners said they would want labour and parts costs to be included. In second place is the option to pay monthly, with 37 per cent, followed by both a choice of cover levels to suit their budget and a realistic policy excess, in joint third place, with 32 per cent each. Close behind was the desire for genuine manufacturer parts to be used in any repairs (31 per cent).
Liz Grindell, head of warranty for Allianz Global Assistance in the UK, said: ‘It’s clear from our survey that those vehicle owners who have never benefited from a warranty package – either as part of a new-car ownership scheme or have purchased one by choice – don’t recognise the value of cover. The reality is good warranty packages offer many of the features motorists are actually looking for, providing a key window of opportunity to up-sell the benefits.
‘When looking to sell a warranty product, focusing on the financial benefits would be a good approach as these appear to be the main concerns for car owners. This angle is especially strong if the customer would be able to pay monthly. In addition, it’s important to point out that genuine manufacturer parts are used, and highlight the quality of training received by technicians.’
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