Supplier Tips

Warranty sales rise by more than 20 per cent in six weeks across RAC Dealer Network

Time 10 months ago

Warranty sales by volume across the RAC Dealer Network have gone up by 21.4 per cent over the past six weeks against the same period in 2019, according to new figures.

Sean Kent, RAC director of sales at Assurant, which partners with the RAC in the aftersales sector, added that business from the network’s 1,500 retailers were now almost the same as pre-lockdown levels seen in February and March.

‘We have seen a dramatic bounceback since used car and van sales resumed at the beginning of June and there are no signs of it abating yet.

Advert

‘2020 was already proving to be a record year for warranty sales across the network before the coronavirus crisis took hold and the resumption of momentum that we have seen over the last few weeks has been little short of astonishing considering the circumstances.’

He added: ‘The psychology of the moment is interesting. There are clearly relatively large numbers of people who are keen to buy, but they are notably more cautious about their purchase than before lockdown.

‘Certainly, we are seeing an increased emphasis on the proposition being offered and it is noticeable that, for example, an ongoing trend to offer six months of standard warranty rather than three appears to have accelerated.’

He said a great deal of time and effort had been spent to help ensure members were in the right shape to maximise sales after lockdown – and that dealers had continued to sign up to the network.

‘We provided a number of methods of support – from a series of e-workshops through to advice from our account management staff and a range of new point-of-sale material and RAC digital assets designed to be used on websites, emails and social media.

Advert

‘The latter are extremely important from our point of view. Clearly, more sales are being originated and completed entirely online, and it is important to help dealers maximise the impact of the RAC brand and the confidence that it inspires.

‘Customers know that the RAC would only allow its name to be applied to a dependable and trustworthy retailer, and our pre-lockdown research showed that more than two out of three car and van buyers felt more confident thanks to its presence.

‘The fact that 22 new dealers joined the network in June alone is testament to the positive effect that retailers feel the brand delivers.’

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.

More stories...

Advert
Server 190