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RAC Used Car Dealer Survey Deemed Misleading

Posted June 24, 2015

How did the RAC survey give the used car dealer industry a bad name?

A recent RAC used car dealer survey has been deemed "misleading" and took some stick from the industry. The survey found that more than a third (39%) of motorists who have bought a second-hand car from a dealer would under no circumstances use the same dealer again.

The study by the RAC looked into the car-buying habits of 1,500 motorists which also found that 40% of consumers said they have had a problem with a vehicle bought from a used car dealer and just under a third (29%) said the dealership was disappointing when it came to putting the problem right. Although such figures are rather bold and inaccurate for the entire used-car dealer industry, which explains why the RAC have received some stick for this.

Also, dealers that rely very heavily on word-of-mouth recommendations from customers they need to buck up their ideas as one in three car owners claim they have actively told others not to use a specific car dealer. Although the industry is portraying quite a different story for used-car dealers, as the second hard car market is actually thriving and dealers are in a comfortable position to benefit from the demand. So how accurately exactly is this survey reflecting on the used car industry? In contrast to the survey, 56% of motorists actually said they would buy a used car rather than a brand new vehicle because new cars depreciate faster. On top of this, a further 44% feel they get a better quality and higher spec of car if they buy from a used car dealer.

Steps you can take as a dealership to ensure customers leave happy

  • Prioritise your customers - Customer service is key in any line of business, although within the used car dealer industry it can often be overlooked by some salesman. The most important thing is not to make a sale but to meet your customers needs and ensure they leave more than satisfied, as this opens up avenues for future leads.
  • Once sold, maintain the happiness - Building the relationship with the customer is only the first step of the buying process and the last step is certainly not to sell them a new/used car. Ensuring once you have sold them a car that they are happy with how it is performing is key for future business and positive recommendations. Therefore if a past customer has an issue be there to help in any way you can or recommend them to a third-party which can.
  • Focus on customer intent - Don't refer a customer to a car which merely fits their needs but is of a higher value, appoint them to something you genuinely think is best for what they are looking for. Approach the customer with a level-head not entirely from a sales/business perspective.
  • Be transparent - If you are selling a vehicle with a minor problem or a certain feature the buyer should be notified of, then make sure you tell them don't let them walk away and discover it a few weeks down the line as this leads to negative feedback for your dealership.

How we can help

If you own a dealership there are countless responsibilities that come with it so let us take some of the strain by ensuring you are covered for certain eventualities from unhappy customers and purchase a tailored combined motor trade insurance policy today with Network Trade Insurance. Call today for a quote on 0800 121 69 65.

5 Tips to Consider when Shopping for Motor Trade Insurance

Posted May 5, 2015

If you are looking to invest in Motor Trade Insurance, there are a few things that you need to know before you commit. We’ve put together a list of our top 5 tips to help you when shopping for the right insurance for you!

1-     Consider your budget.
Before signing up to an insurance policy, you need to have a clear idea of how much you actually have to spend. There is no point choosing one which you can’t afford as you will end up getting yourself in a tricky situation when it comes to paying up!
2-     Choose the right insurance company.
Ringing every insurance company that takes your fancy might seem like a good idea, but this is not always the case! Network Trade Insurance have built up strong relationships with a number of insurance providers, which means that they can get the very best price for you. You can use them as your representative, and they can get you the very best deal on the market. This saves you both time and money, which is essential if you have your own business to run!
3-     Think about exactly what it is you need to cover.
Clients will need to cover different things under their policy, depending on the nature of their business. Whether you are a car dealer looking to insure your vehicles, or want to cover your employees, there will be policies out there to suit you. Combined Motor Trade Insurance allows you to cover all of these things with one policy, meaning that it is easy to keep track of. Your payments will come out in one bill, so you can work this into your company’s monthly outgoings.
4-     Review your policy regularly.
Reviewing your policy on a regular basis allows you to check that you are getting the very best for your money. Insurance deals often change depending on what time of year it is and how long you have been using their policy. You can check all of these details when speaking to your insurance provider or broker, being sure to check for any promotions or discounts that are available. They are there to help and provide you with a high quality service, so don’t be scared of asking questions!
5-     Read the small print!
Before you sign up to an insurance plan you should always read the small print. There may be terms and conditions which haven’t been mentioned to you, which you will need to know about. You also need to know exactly what is covered in your policy to ensure that there isn’t anything you have missed out. It’s a good idea to print out the contract and keep it somewhere safe, or alternatively ask for a copy to be sent out to you. This just means that you have something to refer back to if you are unsure or forget the details of your Motor Trade Insurance Policy.
Each of these tips will help you to prepare yourself before investing in an insurance policy. Try to remember that providers are there to help, so get as much information as you can and take the time to think about your choice. This way you will get the best insurance to suit you!

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