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Warranties poised to play more decisive part in used car market

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Time 9:52 am, May 30, 2020

Warranties are set to become a crucial factor in the used car and van sectors as dealers look to online and click-and-collect to restart the market, says the RAC Dealer Network.

Sean Kent, pictured, RAC director of sales at Assurant, which partners with the RAC in the aftersales sector, said that when it came to any form of remote vehicle retail, warranties could be key to reinforcing customer confidence.

‘Someone making a major purchase online, such as a vehicle, wants to have the reassurance that they’ll be protected if something goes wrong, and this is where a high-quality warranty from a well-known provider becomes so important.


‘We’ve been doing a lot of work with the RAC Dealer Network over recent weeks, paving the way for a resumption of online sales and deliveries, and one of the crucial factors we’ve been discussing is how to create a high level of peace of mind for the customer.

‘When someone is sitting at home buying a car or van during lockdown entirely from their smartphone or tablet, the warranty becomes a crucial element in the sale.’

He added: ‘One noteworthy trend that was emerging before lockdown and which we believe will now gain further momentum is towards longer warranties, with many of our dealers moving from a standard three to six months, or from six to 12.’


A series of workshops for the 1,500 members that included extensive guidance on web sales has now been completed, and Kent said that even ahead of the extra activity now expected from online sales, it had been processing claims, with a substantial proportion of the network now open for business.

‘When it comes to warranties, our approach has been to ensure that there is no customer detriment resulting from the lockdown, so we are committed to considering all relevant claims regardless of the plan or the policy’s expiration date.

‘For example, we will not decline any claims due to lack of a service history which occurred during lockdown or any drive-on damage which happened during lockdown for essential use. Our aim is to be as fair as possible.’

More: RAC Dealer Network sets up workshop webinars to help get members through crisis and beyond

John Bowman's avatar

John has been with Car Dealer since 2013 after spending 25 years in the newspaper industry as a reporter then a sub-editor/assistant chief sub-editor on regional and national titles. John is chief sub-editor in the editorial department, working on Car Dealer, as well as handling social media.



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