Warranties are becoming increasingly central to dealer reputation management because of the power of online reviews.
According to the RAC Dealer Network the warranty provided with a used car plays a key role in how many post-sales issues are eventually resolved.
It found that online reviews in which dealers and their customers tended to be most interested were where an issue with a used car had arisen and how it had been handled.
Sean Kent, RAC sales director at Assurant, said: “Online reviews can make or break the reputation of a dealer – a fact which, in a highly competitive used car sector, can have a dramatic effect on their business.
“Dealers are therefore becoming much more concerned about how they are perceived through these reviews and are taking their reputation management much more seriously as a whole.
“Part of this process is undoubtedly considering how the warranty experience translates when it is part of an online review created by a customer.
“A good warranty experience can really help to underline the dealer’s commitment to customer service and the strength of their overall proposition. A bad warranty experience can have a negative effect. That’s why the warranty is so important in this respect.”
“Once upon a time, a warranty was seen as much more of a financial product. How a claim was handled didn’t necessarily matter as long as it paid out where appropriate. Now, the soft skills side of claims handling is something in which there is a great deal of interest.
“Dealers have a strong awareness of how these elements can impact on their online reviews.”