Thursday, August 23, 2007
Dealers receive £375 on average warranty claim
Car dealers generate an average of £375 in revenue for each warranty sold in the dealership, according to new research.
On a 12-month warranty period based on a one in four claims ratio, a dealer generates around £235 on each claim and a further £140 on a driver getting their car serviced at the dealership.
Research by insurance company MB&G found that the two transactions generated around £185 in profit for the dealer and also provided the basis for an on-going relationship with the customer.
“Dealers should focus on selling any value added package that encourages regular communication between them and the customer and that gives them a reason to come back again,” said Kevin Pearce, MB&G’s operations director.
“Too many dealers are looking for a quick profit fix and choose to sell items that only give a one-off benefit to their bottom line.”
DATED: 23.08.07]
FEED: MT
