Fewer than one in four dealers are attempting to sell warranties and other aftersales products digitally – despite evidence from iVendi that one in three used car buyers will adopt them if they are offered.
In the 12 month period ending in June, only 21.9% of dealers included aftersales products within propositions they sent to potential used car, van and motorcycle buyers using iVendi’s Digital Deal product. However, over the same period, 32.3% of those consumers opted to buy at least one value-added product where they were included.
James Tew, CEO, said: “At a point in time when stock shortages mean that volume used vehicle sales are falling, generating the maximum profitability from each sale is crucial for dealers. Therefore, it seems like a simple but effective step to include warranties and other aftersales products such as GAP insurance, paint protection, tyre insurance and MoT insurance within all of the digital propositions that you issue.
“The technology means that this can be done in literally seconds and the evidence shows that around one in three customers will be receptive. It seems like a very easy win for retailers.”
Digital Deals are part of the iVendi TRANSACT Deal Management System, that allows retailers to include highly profitable value added products, to each customer, connecting the online and showroom sales experience.
James explained: “The whole approach behind Digital Deals is that they allow a proposition to be created and sent to the potential buyer as the basis for an online negotiation designed to replicate the subtleties of an in-person dialogue.
“This means that warranties and other aftersales products can be included from the outset as an element of the dealer offering. What we have found is that it is their introduction near to the start of the sale, rather than being treated as an add-on towards the end of the customer journey, that drives acceptance.”