More than one in three car buyers extending warranties

More than one in three (35%) people buying a car from the RAC Dealer Network are opting to extend the standard warranty, new data from JudgeService shows.

The results, compiled from more than 17,000 customer surveys completed across the 1,400 dealers who are part of the network, also shows that 57% say that the presence of the RAC brand had a positive impact on their purchasing decision.

Lee Coomber, RAC client director at Assurant, which partners with the RAC in the warranty and aftersales sector, said: “With more than a third of consumers choosing to enhance their warranty when the option is offered by the dealer, it’s clear there is a high level of interest in increasing cover beyond the initial level offered with the vehicle.

“We’ve been reporting for some time that, because of the ongoing ageing of the UK car parc, motorists tend to be driving older cars and vans, so are looking for increased levels of protection against unexpected costs. An extended warranty meets that need.

“The research also shows the value of the RAC brand when it comes to choosing a dealer and opting to upgrade their cover. In a warranty market with very little brand recognition, the presence of the RAC Warranty name brings a degree of reassurance that has definite value to the dealers with which we work and their customers.”

The JudgeService analysis also looked at the overall performance of the RAC Dealer Network, showing that 98% of customers were satisfied with the attitude of the salesperson, 98% with the choice of vehicles and 98% with the customer handover. Overall, 96% would recommend the dealer they bought from to family or friends.

Lee said: “These are impressive figures and contribute to our excellent net promoter score of 78.4%. We will, of course, always work to deliver further improvements but this a strong performance that, we believe, shows the overall quality of the network.”

JudgeService was named as the RAC Dealer Network’s reviews and feedback provider in April 2024, and Lee added that the partnership had proven to be positive.

“Car buyers take feedback very seriously and working with JudgeService provides our dealers with market-leading tools to help them build and manage their reputation. As well as being available online, all customer reviews are hosted centrally on the main RAC web site so anyone searching for an RAC dealer can see the rating of individual retailers and read about verified, real world experiences from other consumers.”

JudgeService was founded in 2011 and today works with around 2,000 dealers in the UK on reviews and feedback. Neil Addley, managing director, said: “This latest RAC research, timed to mark 12 months of our partnership, is very positive and compares extremely well with the wider motor retail market statistics that we compile.”

The RAC Dealer Network – which numbers more than 1,400 used car, van, motorcycle and motorhome retailers across the UK, including independents, franchises and car supermarkets – is the exclusive retailer of RAC Warranty products. They are underwritten and administered by Assurant, a Fortune 500 company.

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