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Why should customers buy an extended warranty?
Why should customers buy an extended warranty?
Before buying any add-on products, customers will weigh up the pros and cons. They will try to work out whether or not it will add any value to them. At this time you need to inform them of the features, benefits and exclusions of the policy so they can make an educated decision.
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Explain exactly what it is
This may seem a little simple but they need to understand that warranty is a protection product. Extended warranty is a precautionary measure, designed to protect the customer should anything go wrong mechanically or electrically with the vehicle during a specified period of time.
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Make any exclusions clear to them
If they are buying a used car, is there an age limit, what service & maintenance requirements does the policy require and does the car need an MOT to be able to claim? It should be made clear to them what is covered and what is not covered by the policy and if there is a capped sum on any of the repairs.
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What type of warranty are they getting?
Is it personal, extended or manufacturer’s warranty? You need to make sure they understand which they are agreeing to and that they understand the restrictions and benefits of the type of warranty they are buying.
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Are there any added benefits?
By taking the warranty do they get roadside assistance or servicing included? Information like this can make a huge difference to someone’s decision. If they don’t already have breakdown cover with another provider this may be of real value to them.
You need to help your customer understand the product so they can make an informed choice on whether or not it adds value to their purchase.
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