Auto retailers need to rethink their customer propositions to provide greater financial security for cash-strapped customers, according to RAC Dealer Network.
Lee Coomber, director of RAC sales agents at Assurant, which partners with RAC in the dealership and aftermarket sectors, said auto retailers need to identify ways to reassure customers who are being offered older vehicles at historically high prices due to stock-outs. time that sees their personal finances strained.
He said customers are looking for a high level of protection against the possibility of unexpected expenses, especially since they might be buying an older car with higher mileage.
The network recommends that dealers offer a more comprehensive and longer warranty, either as standard or as part of an upgrade path, alongside an additional focus on service plans.
Coomber said: “It is important to realize that at times like these customers are very often actively seeking and willing to pay for higher levels of protection. Guarantees are, to a large extent, a counter-cyclical product that often experiences high levels of sales during periods of difficult economic conditions.
“However, there are other important elements to rethink the proposal. Ensuring that each vehicle is prepared for sale to a high standard, as well as emphasizing the complete nature of each service history, for example, also has a role to play. This is to reassure as much as possible. »
Demand for GAP insurance quotes and extended warranties for alternative fuel vehicles (AFVs) is increasing year over year (YoY), according to data from Intelligent Motoring.
Coomber said the RAC dealer network was in talks with members to look at ways to modify and improve their customer propositions in response to changing market conditions, from providing advice on the products offered, to training and to sales analysis.
He said: “The common theme we hear from dealers is that motorists don’t want to be in a position where they have to come up with big lump sums and pay for maintenance falls into that category. Service plans help customers spread the cost of maintenance predictably over time.
“We are in a position where we expect a large portion of dealers to revise their proposition in the second half of the year as market conditions continue to change, and we will work to support them throughout. of this transition.”