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Warranty values grow in importance to dealers

Dealers are increasingly recognising the boost that warranties can bring to aftersales business – and working harder to sell them as a result.

Ian Simpson, sales and marketing director at RAC Warranty, said: “The majority of dealerships now make more money from their aftersales operations than from selling new or used cars, so they are understandably very keen on winning and retaining aftersales business.”

Although dealers may view the sale of warranty products as a profit stream, they shouldn’t ignore the impact good warranty provision can have on the customer relationship.

Launched last November by the RAC in a joint venture with The Warranty Group, RAC Warranty is promoting warranty claims as an opportunity for the dealer to build on the relationship with a customer. A positive warranty handling experience could play a key part in building a long-term relationship if the right impression is made on the customer.

Simpson added: “Dealers want that customer to return for future service and maintenance work. A well-handled and efficient warranty claim is as much a part of a dealer’s ongoing CRM process as any other customer relationship tool at their disposal.”

RAC Warranty offers a range of warranty products for FSA compliant dealers and a new maintenance and repair product that is not subject to FSA regulation.

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