Used car dealers are missing out on a major gap in the market by failing to offer service plans when completing a sale.
This is the view of The Warranty Group, which has stated that service plans are typically offered by manufacturers to go with new cars, but second hand vehicles are being overlooked. The company stated: "We find that, generally speaking, used car customers are every bit as receptive to service plans as their new car counterparts, so there are definitely opportunities being missed here."
Used car dealers should not simply focus on securing the sale then waving goodbye to a customer – adding a service plan will create more revenue and keep continued contact with the customer. To do so, a dealership will require a road risks insurance policy that will enable its mechanics and dealers to drive customers' cars as part of the servicing process.
According to Serkan Obuz, head of corporate sales and training at The Warranty Group: “Where manufacturers view service plans as a crucial element in the used sale and an adjunct to their approved programmes, we do see levels of penetration almost as high as for new cars.
“When you consider the potential for profit and customer retention that service plans create, it is surprising that more manufacturers and dealers don’t take them seriously in the used sector.”