The age profile of franchised car dealers’ used stock is getting older as motorists are keeping hold of their vehicles for longer (typically between five and seven years) which combined with the extended manufacturers’ car warranties, means that many dealers are struggling to increase their margins through the sale of car warranty products.

The current used car shortage has had an impact on both dealerships and auctions, with prices reflecting the availability of premium quality vehicles. Dealers cannot sell empty spaces and so more and more are looking to increase profits by offering those “too good to trade” vehicles that fall outside of their desired stock profile or franchise marque. But are they missing out on a tremendous opportunity? These vehicles would normally go to auction for another dealer to buy and turn into profit, so why not retail them, along with a good warranty and recovery package instead?

The WMS Group are experiencing an unprecedented demand from franchised dealerships for warranties to cover these vehicles that often are too expensive to cover or fall outside of the manufacturers approved programme. Our ‘Safe and Sound’ scheme ticks all of the boxes when it comes to providing an excellent level of protection and we are driving footfall into dealerships with our B2C marketing campaign, involving Sir Stirling Moss’s endorsement. We can also design a warranty to reflect the age and mileage of the stock being offered with great upsell opportunities (such as receiving up to 50% cover free of charge when the customer upgrades to a longer term) to create more profit for the dealership.

New vehicles that come with a standard car warranty duration will also present an opportunity to bolt on a new-extended car warranty, which will compete with the ever increasing number of manufacturers offering the longer periods. This means that a new vehicle with a typical three year car warranty can have an extended plan ready to click in when the manufacturers cover expires, which can serve as a great negotiating tool when competing with other dealerships for the customer’s signature. In our opinion, and perhaps with other businesses industrywide, car sales is no longer all about discounting, but instead adding value and peace of mind.

For more information on the WMS Group please click here to request your free dealer pack or contact Eric Stone on 07789 682502.