Warranty claims have risen significantly as lockdown restrictions have eased and drivers have returned to the roads, according to new figures.
The latest data from more than 100,000 Händler Protect warranties currently active shows that as car buyers got out on the road, there were both highs and lows for owners.
Warranty sales continued to climb month-on-month for Händler Protect’s approved partners in this boom time of used car retailing. In February, sales were up 9.78 per cent compared with January but in March warranty sales grew by almost a quarter (24.44 per cent).
This was before showrooms were able to operate in a near-to-normal way, with customers only allowed back in to try before they buy from April 12. Warranty sales continued to grow for the company in April though – up 9.99 per cent compared with March – via more than 1,200 dealerships authorised to offer Händler Protect warranties.
However, this burst of increased purchases and the number of cars getting back on the road did result in an increase in claims made. According to Händler Protect data, it saw an increase of 30.07 per cent in claims made in March versus February.
This was on top of Q1 warranty claims that were up by 24 per cent compared with Q1 2020, while sales were up an incredible 34 per cent for the same period.
This dropped off slightly in April versus March, with claims dropping by 8.68 per cent, although in all cases these drivers were protected by the great cover that a Händler Protect warranty offers.
Händler Protect only works directly with independent used car dealers who offer their products to customers, but when something goes wrong it is the first line of support.
In April, the most common faults reported to the warranty provider involved water pumps, injectors, air flow sensors, alternators and fuel pumps.
Lloyd O’Connor, chief executive at Händler Protect, commented: “It’s inevitable that as more cars get back on the road we’ll see a percentage increase in the number of claims, particularly with so many people choosing to buy that dream car this year as they find themselves with a bit more money in their pocket.
“Our network of authorised dealers are able to build confidence with their customers by offering one of our extended warranties. Not only is that great for the customer, but our data shows that it’s also really important for them, with a 66 per cent increase in conversions for our dealers who do offer one.”
Händler Protect offers security for both car dealers and their customers, with 24/7 support from its dedicated team and breakdown cover should an issue arise while out on the road.
*Article Source https://www.handlerprotect.com/