April 11, 2014

Warranty earns dealer additional £5k profit – in one month

The seven element ‘Safe and Sound’ scheme endorsed by Sir Stirling Moss has helped one dealership to create an additional £5,500 profit from warranty sales alone, during the period of just one month.

This announcement comes from independent dealership Dunecht 4×4 of Aberdeenshire six months after signing up to the ‘Safe and Sound’ scheme. As an approved dealership, Dunecht include the standard six month warranty on all vehicles sold, but offer every customer the opportunity to purchase a longer duration through a range of incentives such as receiving up to 50% cover free of charge. ‘Safe and Sound’ are delighted to report that in August this year, the dealership achieved a 76% conversion rate on warranty upgrades, resulting in a gross margin of £5,500 before vehicle sales.

Dealer principal Bill Gauld commented: “If we can maintain this level of penetration in eleven months’ time then we would have increased our profit margins by over £65,000 just from warranty upgrades alone. ‘Safe and Sound’ have delivered many new customers to us and the scheme has blown all of our expectations out of the water. Dealers that are struggling to increase their warranty sales should contact the team at ‘Safe and Sound’. We are finding the extended warranties very easy to sell, because customers see the value in the products.”

‘Safe and Sound’ dealerships will include as standard a six month wear and tear all-mechanical-all-electrical warranty*, 60 point safety inspection, full provenance check and mileage verification, six month recovery package, independent price and buy-back guarantee. The individual elements would normally retail at over £500, but ‘Safe and Sound’ dealerships are including them free of charge to provide genuine peace of mind.


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