Warranty invalidation risk
CAR dealers should educate customers on the risks of skimping on servicing – or warranties may be at risk.
Mondial Assistance warns that many new car warranties have terms and conditions that demand servicing only by manufacturer-approved garages.
However, some customers are choosing independent garages instead – meaning car makers won’t pay for warranty claims.
Liz Grindell, Mondial’s warranty manager, revealed that owners are ‘unaware of how disregarding the terms and conditions of their warranty can influence its benefits.
‘Many manufacturer warranties won’t pay a claim for work that hasn’t been carried out by a manufacturer approved dealer, or by an independent who hasn’t used manufacturer approved parts, so customers need to be made aware of these conditions to avoid costly mistakes.’
Car dealers should also remind customers that they shouldn’t skip services, either. This can lead to warranty exclusions, too.
‘A misunderstanding over terms and conditions can not only leave consumers out of pocket, it can cause bad feeling between them and the manufacturer.
‘Dealers need to educate customers to ensure they understand their warranty package and how to get the best out of it.’
By doing so, she adds, there’s money in it for them. ‘Dealers could bring valuable aftercare business into their workshops, as well as enhancing customer relations and retention.
‘As the market continues to adjust to economic influences, the manufacturers who look after their customers today, will be the winners tomorrow.’
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Tags: aftersales, mondial, service, warranty