Warranties attract most car buyers, research finds

Warranties attract most car buyers, research finds

Offering a warranty on a car is 10 times more likely to attract a buyer than servicing plans, new research has found.

Castrol Professional and Trend Tracker asked car buyers what made them choose the dealership they bought their last vehicle from and 68.5 per cent cited being covered by a warranty as the main reason. The next most important factors were the expertise and competence of the dealer (12.3 per cent) and service plans (6.3 per cent).

The research reflects the fact that motorists want the security offered by warranty protection for their purchase. In much the same way, car dealers should obtain a road risks insurance or combined motor trade insurance policy to protect their own assets - including stock, equipment and the business premises - against any unexpected mishaps.

The findings from the interviews conducted by Castrol Professional and Trend Tracker with more than 17,500 British car owners were revealed at a recent private dealer conference in London, but will be released in an official report later this year, AM Online reported.

Trend Tracker analyst Chris Oakham said: “While new car buyers are no longer legally tied to a dealership for the sake of the manufacturer’s warranty, the data highlights the undeniable benefit of a strong manufacturer warranty as a key driver behind aftersales retention. Service plans are important, but these findings highlight the importance that buyers place on manufacturer-backed servicing.”