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Warranties provide added peace of mindBack

Warranties are currently providing a lifeline for dealers as well as offering customers added peace of mind when they come to purchase a new or used car.

As Britain faces the toughest trading conditions since the recession, car dealers are benefiting from a range of current services which can be offered to motorists to make certain that their new or used car is fully covered to withstand mechanical failure.

Due to the current economic downturn, car buyers are currently looking for vehicles which will last them longer periods of time, which is why purchasing a ‘lifestyle’ warranty has become more popular and is a sensible move for any motorist.

Warranty Group sales and marketing director Ian Simpson, said: “The tough economic climate continues to affect the warranty market in two key ways: dealers facing reduced margins want to sell more warranties and used car customers who want to avoid unexpected motoring bills are more receptive to buying them.”

Mapfre Warranty chief Dennis Foley has cited that customers who are seeking protection from unnecessary financial expenditure and decide to purchase one of their Black and White lifestyle warranties will benefit from a high quality product and a warranty provider who will not let them down. The company expects to sell approximately twenty per cent more warranties this coming year than in 2010.

A recent survey conducted by Mapfre found that forty per cent of respondents planning to purchase their next car would be keen to include a warranty in it, with thirty-six per cent of people admitting that the length of their next warranty would be a consideration.

Foley said: “Customers must be made aware of the quality and value of the warranty and that benefits are crystal clear so there are no hidden surprises in the event of a claim. If the conversation about warranty and other insurance products starts early in the sales process, a dealer can get a good feel for the customer’s needs.”

With the second half of 2011 being the toughest time for used car retailers since 2008, it is well worth dealers investing time in training up their sales staff to recognise the benefits of extended warranties and pass this information on to the customer.

Warranty Group sales and marketing director Ian Simpson said: “Lifestyle warranties deliver additional profit for the dealer at the time of the sale, improve the possibility of ongoing aftersales’ relationships with customers and even create the potential for further used car sales when the guarantee periods come to an end.”


Posted by Leana Kell on 28/12/2011