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Finance insight: Make an extra £500 on each vehicle deal

Missed opportunities to upsell, poor claims handling and restrictive clauses are all potential issues facing motor retailers when dealing with warranties.

According to new research from Auto Trader, more than 50% of dealers do not upsell additional cover with their standard warranty offers on used vehicles, and over half of dealers don’t offer GAP insurance. These missed sales opportunities for dealers on warranties and F&I products could be worth up to £500 on an average vehicle sale, according to figures supplied by warranty companies.

The research, which was conducted among 200 dealers nationwide, also shows that just 15% of dealers offer insurance at vehicle point of sale, only 12% offer tyre insurance, and less than a third offer breakdown cover.

Jonathan Williams, head of marketing at Trader Media Group, says: “Statistics like these show that sales opportunities for warranties and F&I products are being missed by dealers. There is a vast area of untapped revenue out there.

“Dealers should work in partnership with their warranty suppliers to upsell extended warranties and F&I products on all their vehicles, and they will undoubtedly see an increase in their profits.”

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