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News and views from the automotive industry.
Advice on selling Vehicle Warranty – could you improve?
Warranty can be a major selling point for any vehicle as it’s a huge benefit to customers, offering peace of mind and financial support when most needed.
How you communicate the benefits is vitally important – a customer can be easily scared off if you put reams of small print in front of them or present a baffling array of graphs.
Obviously, you don’t want to give the impression the vehicle might require repairs either so you’ve got to find a balance between eschewing the virtues of a good warranty while reassuring the customer.
The Financial Conduct Authority (FCA) is set to issue new regulations governing the way add-on products are sold in future, so it is even more important to ensure you’re getting it right. To learn more about the changes download our FREE eBook: How the FCA changes will affect you.
What are customers looking for?
The Money Advice Service has a checklist of basic questions customers should ask when buying a vehicle warranty. Dealerships should know what they are and be ready to answer them.
- Does the warranty have an excess?
- Does the policy cover the full cost of repairs – not just parts or labour?
- Is there a maximum that would be paid for labour costs?
- Is there a limit per claim?
- Does the warranty have a limit for either your annual or total mileage?
- Can you only make a claim after a set period?
- Is there a standard 14-day cooling off period?
- Is the warranty company registered with the Association of British Insurers?
- What garages are on the list for servicing and repairs?
- Is the servicing scheduling acceptable?
What should you be doing?
- Ensure your sales staff are fully up-to-date on the warranty (or warranties) that your dealership is offering. That includes understanding all the small print.
Car Care Plan offers specialist training to help dealerships understand our products and be in the best position to sell them. We also offer free dealership Health Checks to ensure you are providing the best possible service for your customers. Click here to learn more.
- Vehicle warranty helps to protect motorists from the unexpected and unwanted cost of a mechanical or electrical fault – getting that across to customers is important. While it may seem like an additional cost right now, it is best to plan for the unexpected and be prepared.
- Understand how the warranty can benefit individual customers, how it may not, and be honest with them. We believe the customer should always be at the heart of your business. For more advice on how best to achieve this, download our FREE eBook: Putting your customers first.