News and views from the automotive industry.

Motorists are delaying repairs due to finances – extended warranty to the rescue

Drivers are delaying essential vehicle repairs and servicing due to finances, research from Car Insurance has revealed. The survey involving 2,000 UK motorists found 15% put off repairs over the last 12 months because they couldn’t afford to pay for them.

The survey also found 37% of motorists drove up to 500 additional miles before getting their car serviced or repaired. And nearly 20% have driven their car with one or more warning lights on due to financial pressure.

Why offer motorists an extended warranty?

Many motorists appear to be in need of financial support when it comes to unexpected vehicle repairs. Extending the warranty on their car, whether new or used, can provide peace of mind. Should their car be subject to sudden mechanical or electrical failure, motorists needn’t worry if they have a comprehensive, no-nonsense warranty, such as those provided by Car Care Plan.

Car Care Plan’s Chief Executive, Paul Newton said: “Dealers are missing an opportunity if they don’t offer longer-term protection to everyone who buys a car – both new and used. Around four in five motor warranties in the UK are included in the price of a used car. There is huge room for improvement. All customers like to feel they are being protected for faults and repairs and warranties are hugely effective at retaining customers – so retailers should be offering extended warranties as standard with every car sale.”

To learn more about vehicle warranty, download our free eBook: Complete guide to Warranty.

Our top 5 tips for improving your warranty sales

  1. Listen to what customers tell you when buying a car and offer warranty to every eligible buyer.
  1. Ensure your sales staff are fully up-to-date on the warranty products your dealership offers.
  1. Strike a balance between reassuring the customer over their new car purchase while delivering the virtues of having a warranty in place to protect against future repair costs.
  1. Understand how the warranty can benefit an individual – not the masses. For more advice, download our FREE eBook: Putting your customers first.
  1. Incentivising staff can be an excellent way to ensure your sales are going in the right direction. Learn more about the FCA’s guidelines of incentivising sales staff in our FREE eBook: FCA Regulations – How will they affect you?

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