F&I Management & Training

Strength of RAC name crucial to new warranty brand The RAC name is proving crucial in the credit crunch-affected used car market to the success of the motoring organisation's new warranty brand. RAC Warranty was launched by the RAC in partnership with The Warranty Group in January and Ian Simpson, sales and marketing director, said that a large part of the new brand's initial success was thanks to dealers recognising the strength of the RAC brand in providing customer reassurance. He explained: "Dealers are telling us the same thing again and again. Customers worried about the credit crunch want a warranty that provides a high degree of reassurance - and trust that the RAC would only put their name to something highly dependable. "There are many car warranty brands available but almost none of them have any recognition outside the motor industry. Being able to say to a customer that you are providing an RAC warranty is a persuasive tool for a dealer." Simpson added that this argument became even stronger for older vehicles being sold by independent dealers who did not operate at the top end of the market. He said: "Used car customers who are spending less money are even more concerned that there is a really effective safety net available that will help them if a problem develops with their vehicle. For these people, the RAC Warranty brand is exceptionally strong." Simpson added that the features attracting independent used car retailers were not just the credibility of the RAC brand but the strength of the product range, easy and effective administration systems and high quality point of sale material. He continued: "This list of benefits is proving very attractive to independent used car retailers and they are coming on board very quickly. We are really pleased with the response we have been getting. "Deals with major dealer groups obviously take a little longer to complete but there are a number in progress and we hope to announce our first very soon."

DATED: 01.08.08

FEED: AW