Whilst five year warranties and other additional features are enticing car buyers across the country, Pinewood — specialists in dealer management — are suggesting that service plans may help retain customers for the long term.
Various manufacturers have already extended warranties on new vehicles — Hyundai, Toyota and Chevrolet offer a five year warranty; and Kia have extended their warranty to seven years on new vehicles purchased in 2010.
Pinewood notes that a five year warranty will lead to a customer returning to the garage numerous times for warranty work. If this is the case, then it makes sense for garages to offer service plans to the customer to promote a long-term relationships and future business — this applies to any additional car owners, should the car be sold within the first five years.
Whilst the motor industry is still expecting hard times later in the year, new cars are currently selling well despite the end of the scrappage scheme. If you are a motor trader, remember it’s important to have the appropriate motortrade insurance cover to protect your business.