Motor Trade Insurance

The Benefits To Motor Traders In Offering Additional Products

July 5, 2019 by Logan Biggs

Motor traders involved in the buying and selling of used cars may be interested in a survey carried out by NextGear Capital UK relating to the sale of additional products by car dealers. Obviously, from the motor trader’s point of view, a major benefit of selling related products when selling a second hand car is that it increases the businesses profitability and possibly the personal income of the owners.

Another benefit is that it may encourage car buyers to return in the future when he or she wants to change their vehicle and such people could also recommend the car dealer to friends and family.

The survey revealed that 9 out of 10 motor traders promoted a minimum of one additional service or product when selling a used car. This confirms that the majority of motor dealers are well aware of the benefit of selling related products.

The most popular related product is that of extended car warranties. The survey revealed that 80% of car dealers offered this product. Extended car warranties can usually run for 1,2 or 3 years.

It is interesting that 75% of used car dealers also offer paint protection.

The same percentage of second hand car dealers also promote service plans.

Another popular product that is promoted by used car dealers is GAP insurance with 69% of used car dealers offering this product.

 Obviously the sale of these products helps increase the profitability of used car dealers. In the current economic climate, anything that can be done to help boost profit margins has got to be welcomed.

There are so many car related products that could be promoted by used car dealers so, if you are in this line of business within the motor trade industry, why not do some research and see if you can offer anything else that is both beneficial to your customers but also increase your income.  

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