With the cost of living rising at its fastest rate for 41 years, many households are tightening their fiscal belts.
Interest rates are at their highest level in years and many are sitting down with their bank statements and totting up their monthly outgoings, finding ways to cut their expenses while their pay cheques are getting squeezed.
Gym memberships, TV packages, phone contracts, and of course vehicle financial aftercare products will all get scrutinised, and possibly seen as expendable.
Car warranty, for example, is an expense that some may feel they can live without – and then hope nothing goes wrong with their vehicle.
However, living in hope can backfire when the unexpected does occur. The average pay out from award-winning provider Car Care Plan for warranty claims in 2022 was £958 – and this is expected to top £1,000 in 2023 due to inflation on parts and labour.
A survey from the Money and Pensions Service found that a quarter of adults in the UK have savings of less than £100 – that equates to over 14m people.
In the event they are hit with a £1,000 repair bill for their vehicle, the likelihood is it will get put on a credit card. According to Which?, the typical credit card APR is around 23 per cent, so paying off a £1,000 bill over the course of a year would end up totalling £1,230 (£102 a month).
So, while a warranty may be viewed as something a consumer could live without, the potential impact of not having protection in place if something does go wrong with their car could result in a larger monthly bill.
Car owners should, of course, make sure the warranty they are paying for provides good value for money. Choosing the cheapest option and assuming it’ll be good enough could spell disaster when the customer comes to claim.
It pays to have a high-quality warranty in place when a mechanical or electrical fault does occur.
That goes for retailers too. Dealerships and manufacturers that partner with an industry-leading warranty provider, such as Car Care Plan, will ensure their customers are getting the protection they deserve. Here are just some of the benefits:
Protect your profit
The Consumer Rights Act 2015 gives your customers 30 days following the purchase of their new or used car to get a full refund or for your business to pay for repairs in the event of a fault.
With a high-quality warranty, this shouldn’t be a concern for anyone, as the warranty provider could pay for the parts and labour.
A great warranty equals peace-of-mind, as faults can soon add up to a significant financial strain.
Protecting your customers’ vehicles leads to a more positive experience for them, improving satisfaction rates, which impacts loyalty and retention.
The better the warranty, the more parts covered and the less restrictions. Customers will also get access to a more efficient claims process, reducing the hassle should they need the support.
Your business can even get help with extended duration processes, once again helping to boost retention.