Motorists show loyalty to dealership for service plans

Customers are becoming more interested in using the local car dealership they buy their vehicle from for service plans as well, new research has revealed.

The study by Motoring.co.uk found that car buyers are 25 per cent more likely to return to a brand dealership if its service plan matches their finance or PCP term. This is being attributed to an effort by manufacturers and dealerships to show the benefits of providing an end-to-end service from purchase through to MOTs and servicing.

While this research will be of interest to the motor trade industry, it is also worth noting that companies providing MOT and servicing should consider professional indemnity cover as part of a combined motor trade insurance quote. This could protect them from bearing the full cost of a negligence claim made against them should a vehicle they have worked on suffer a fault as a result of a mistake they have made.

The figures showed that customers who purchase a car or pick up their car after a service or MOT are 40 per cent more likely to purchase a service plan agreement at the same time. In 2013, 24.8 per cent of motorists had their car serviced at their local franchised garage; this is the same percentage as in 2012 but importantly it was the first time since 2005 that the figure has not fallen.

Chris Green, sales director of Motoring.co.uk, commented on the findings: “We are seeing an upward trend in consumers looking to use franchised dealers for servicing and MOTs. There is much better consumer awareness of what service plans can offer and an increase in uptake of service plans, as they offer a monthly payment plan to spread the cost.”