11:48 am, August 10, 2022
Longer and more comprehensive dealer used car warranties are likely to be in heavier demand as the cost-of-living crisis worsens.
That’s according to the RAC Dealer Network, which said that in times of financial difficulty, people without lump sums to spend on repairs saw the worth of cover above the standard level.
Sean Kent, European director of automotive for Assurant, which partners with the RAC in the warranty and aftersales market, said: ‘What this means, we believe, is that dealers should pay more attention to their warranty proposition as we enter the second half of 2022.
‘They should ensure they have the right products and infrastructure in place to satisfy what is likely to be a growing customer need as the cost of living continues to rise over the coming months.
‘This will enable dealers to increase customer satisfaction and also help them to maximise the revenue from each vehicle by offering a higher level of protection for car buyers at a time when it is very much needed.’
He added that the RAC Dealer Network was already working with its 1,200-plus dealers on ways in which they could meet potentially higher demand for warranties over the coming months.
‘We have a highly developed process that helps dealers construct a strategy to ensure that they have the right standard and upgraded warranties in place.’
Kent said the presence of warranties in the digital sphere was also likely to become more important as the cost-of-living crisis progressed.
‘Modern car buying means that the first time most consumers will see a vehicle is online and they will probably spend some time looking at elements of the sale such as finance options.
‘The warranty is also part of that process,’ he said.
‘Being able to offer the desired level of protection is likely to become an increasingly important factor of the sale.’
