Recent research shows that warranties reduce uncertainty & increase buyers confidence when purchasing a vehicle

A recent survey shows that offering extended warranties on used cars reduces customer uncertainty and price sensitivity. This was confirmed by 67 percent of dealers surveyed. The survey, conducted in late 2024, involved about 300 dealers and more than 1,000 end users.

Customers are concerned about rising prices, inflation, economic developments and international conflicts, which affects their buying intentions. 65 percent of dealers note that these concerns have a significant impact on customers' buying intentions. In addition, customer satisfaction in the workshop sector has declined due to rising costs.

Workshop costs have increased significantly over the past two years, with an average increase of 19 percent for service and repair work. This is due to inflation and wage increases, which increased labor costs by an average of 16 percent. Spare parts prices have also increased by an average of 16 percent.

The auto trade expects these cost increases to continue, with workshop labor hours expected to increase about 11 percent over the next 24 months.

The survey highlights that warranties increase customers' confidence and reduce their concerns. This includes electric vehicle purchases and maintenance costs. Extended warranties appear to be as important, if not more important, than rebates.

Warranties and repair cost insurance are effective tools for retaining customers because they offer protection against unforeseen repair costs and provide a sense of security.

The full version of this article is available in the newsletter section of Carfix https://carfix-pmg-be.translate.goog/nl/dossier/ECFbe2503S08_00/garanties-verminderen-onzekerheid-bij-aankoop?_x_tr_sl=nl&_x_tr_tl=en&_x_tr_hl=fr&_x_tr_pto=wapp