An interest-free option for customers on all sales of RAC-branded warranties is being made available across the 1,360-strong RAC Dealer Network.
Thanks to support from Assurant, which partners with the RAC Dealer Network in the warranties and aftersales sector, buyers are being given the opportunity to pay for their RAC warranty over 10 months of equal payments through direct debit.
Sean Kent, head of account management at Assurant, said: “This is all about increasing the affordability of our products, putting them within the reach of more used car customers and also benefitting our dealers with greater sales penetration at no extra cost to them.”
He explained that affordability of value added products is set to grow in importance during 2019 with research showing that almost one in three customers (29%) would be more likely to buy a warranty if a monthly, direct debit option was available.
“It is well-recognised in the used car market that in times when consumers feel their finances are under pressure, they seek out products that provide them with protection from unexpected costs.
“As the year progresses, this situation is likely to continue. It is essential that dealers are able to provide warranties that meet customer needs and within reach for as many used car buyers as possible.
“The key to enabling these consumers to acquire the level of cover they desire will be very much based around affordability – and we expect to see a greater amount of attention being paid to offering warranties on an interest-free basis this year.”
Our research shows:
29% of customers who wouldn’t normally consider purchasing a warranty would do so if monthly direct debit payments are available
52% of customers who want a warranty would rather pay over 10 payments than one lump sum
(based on a survey of 1,162 respondents conducted by Assurant in January 2019)
To find out more about how becoming part of the RAC Dealer Network can add benefit to you and your customers, visit here.