AM Online

Comment: The benefits of FSA regulations

Although the FSA regulations caused a certain amount of anxiety and considerable debate when they were introduced last year, they also brought many benefits.

One of those benefits is that the quality of motor warranty cover being offered bya dealers to the car-buying public is now significantly superior than it was 15 months ago.

A survey among dealers shows that more than 50% of the Black Horse Motor Warranties supplied with used cars are now for the maximum level of cover, a considerable improvement since the FSA implementation.

In most of these cases the Black Horse warranty, which was developed in conjunction with Car Care Plan, mirrors the manufacturer’s cover – a trend that reflects the increasing expectations and demands of the modern motorist.

The product offers three levels of cover as well as options such as GAP, roadside assistance and MoT insurance.

One of the reasons for this move to more comprehensive cover is almost certainly down to the new regulations themselves. Another, however, is that dealers see a manufacturer-style warranty as the most professional way of satisfying customers’ requirements for a no-quibble, peace-of-mind, unlimited-claims guarantee.

Car Care Plan’s own research, which supports the Black Horse Motor Finance figures, indicates that well over two-thirds of all its used-car warranties are now for the maximum cover, a substantial increase over the figures of two years ago – and provides dealers with a valued profit centre, particularly in a tough market.

Under the new FSA regulations, dealers have to explain clearly to their customers what the warranties offer and what the customer will receive. This structured sales process leads to the motorist being presented with a comprehensive package and, ultimately, this provides them with what they want, meaning more sales and more profit for dealers.

The whole car-buying experience is being enhanced in order to capture more sales at the point of sale, and that can be only good news for dealers. A satisfied customer is a loyal customer.

Black Horse Motor Warranty is administered by Car Care Plan, and marketed through the 300 strong Black Horse Motor Finance sales team. For further details please contact your local Black Horse account manager.

  • John Woolley, operations director, Black Horse Motor Finance
  • If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

    Comment as guest


    Login  /  Register

    Comments

    No comments have been made yet.