Warranty revenue stream

Time 13 years ago

065767400_1209544387.jpgINCENTIVES are needed to boost new car sales.

That’s the word from the AA, which reports that new car sales have dropped to their lowest point in nine years.

Financial worries and escalating fuel prices are dictating the cars people are buying, it says. And it seems those cars are models older than three years.

Most of which, of course, will not benefit from a standard manufacturer warranty.

This can leave owners facing unplanned repair bills – just the sort of shock they’re trying to avoid by choosing a cheaper used model. Here is your opportunity.

Ensure you offer warranty protection, on both new and used car sales. This gives customer reassurance, but also provides you with a much-needed additional income stream.

‘Many dealers need to start offering incentives to potential customers, to reassure them that their investment is a safe one,’ said Simon Tennyson, MD of AA Warranty.

As well as regular warranties, he also points out the attraction of gap insurance, which covers the difference between what someone pays for a car and what the insurer offers in the event of a write-off.

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Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.

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