Vehicle Warranties as Buying Factor
New “puls“ study
The coming weeks and months will be dominated by the recovery from the economic consequences of the coronavirus. The car trade is also affected by this – and must now take every opportunity to win and retain customers. A representative study conducted by the Nuremberg-based market research company puls on behalf of CarGarantie shows how warranty extensions can serve as a buying stimulus for new, used and electric cars. It becomes clear that a warranty can not only considerably increase a customer's willingness to buy, but also contribute significantly to customer loyalty – and thus help dealers to consolidate.
High Interest in Warranties
According to the puls study, 61% of both new and used car buyers are interested in a warranty extension or a used car warranty. The actual number of conclusions, however, is significantly lower: Only 41 % of those interested in a used car and as few as 28 % of those interested in a new car also conclude a warranty when buying a vehicle. Dealers thus miss out on up to 33 % of the warranty contracts, depending on the segment.
One of the reasons for this is simply the lack of an active warranty offer. This is where dealers who want to close the gap between potential buyers and actual contracts can start: An active, professional and reliable warranty offer would be appreciated by numerous customers.
Increased Willingness to Buy Thanks to Warranties
Dealers can benefit twice from this: Not only can they conclude additional business through warranties, offering a warranty also significantly increases their customer's willingness to buy. As the study shows, the buying propensity for used cars increases from 38 % without offering a warranty to as much as 63 %. For new cars it increases from 39 % to 50 %. At the same time, customer loyalty to the brand and the car dealership also grows: According to the puls study, the willingness to recommend the dealer to others rises significantly after a warranty offer, as does the tendency to have the vehicle serviced and repaired in the dealer's workshop.
Cooperation with CarGarantie
In order to be able to exploit the as yet underused potential, dealers need a reliable partner who provides high service quality both in the area of warranty offers and claims handling – a partner like CarGarantie. CarGarantie has exactly the right products in its portfolio, enabling dealers to actively offer their customers attractive warranty deals. Dealers can rely not only on the well-known service and fast claims processing of CarGarantie: CarGarantie offers all services, from product development to marketing and claims payment, from a single source. Experienced field service experts support dealers in all questions and the evaluation of key figures. In this way, dealers can ensure that "lost deals" become "done deals".
For the puls study, 2,041 car buyers in Germany were questioned about their interests and buying habits.