According to Autoguard Warranties, dealers face stiff competition from online warranty providers. Consumers can now purchase a range of automotive products and services online from insurance, finance, tyres, parts and accessories, without ever visiting a dealership.
Rising numbers of consumers are purchasing products, such as extended warranties and GAP insurance online. So how can dealers protect and grow their warranty sales?
Robert Dockerill, pictured, CEO of Autoguard Warranties, explains: ‘Some dealers are becoming more sophisticated in the way they upsell warranties, using merchandising, training, video and their websites. In fact, dealer websites that enable consumers to easily check warranty prices, payment plans and cover will have a competitive edge.
‘Dealers have a great opportunity to educate consumers about various warranty products and cover. Warranties can account for 10-15 per cent of the profit of a vehicle and I still believe the showroom is the best place to sell warranties, despite the rise in online warranty sales.
‘Consumers have the opportunity to ask questions and share any concerns or worries about warranties and dealers can deal with misconceptions head on. Dealers can build a trusted relationship with customers and give them help and support in buying the right cover.
‘The challenge is for dealers to protect and grow their warranty sales and this can be achieved through implementing a multi-channel approach to selling warranties. By combining a great showroom experience with a great website experience, dealers will be able to engage consumers in warranties and drive sales.’