Increase in number of dealers seeking warranties for premium cars

9:58 am, August 19, 2016

MORE independent dealers are turning to warranties to compete with franchised dealers on premium vehicles, according to Autoguard Warranties.

The company has seen a 34 per cent year-on-year uplift in inquiries from independent dealers who want bespoke, manufacturer-quality cover for three-year-old premium vehicles from manufacturers such as Porsche, BMW, Mercedes-Benz and Lexus.

Robert Dockerill, CEO of Autoguard Warranties, said: ‘Increasingly, dealers are competing head-on with the franchised dealer sector at the top end of the market. By offering potential buyers premium-quality warranties that cater for higher labour rates and diagnostics, dealers can compete on a level playing field with franchised dealers.

‘Many premium car buyers assume that franchised dealers have the best facilities and manufacturer-original parts compared with independents. Independent dealers are fighting back with added-value warranties that have built-in roadside assistance and manufacturer-level cover.

‘We have been creating more and more tailored warranty products for dealers who want to compete with top-end franchised dealers.’

Samuel Evans of Beck Evans, a leading supplier of prestige used cars for sale in Kent, said: ‘We approached Autoguard as we were keen to put together a warranty package for a three-and-a-half-year-old Porsche we were selling.

‘Our customer was considering buying a similar vehicle from the franchised Porsche dealer nearby and the deal came down to the warranty.

‘Autoguard Warranties designed a product that was comparable with the manufacturer warranty, with built-in cover for higher labour rates and diagnostics.’