RAC plans 100 additions
The RAC Dealer Network is aiming to add around 100 new dealers by the end of 2018, bringing the total to just over 1,400.
There has already been substantial growth in recent years with a little under 1,000 dealers in the network at the start of 2016.
This rise in network size is leading to a commensurate and substantial boost in warranty sales, with a 12% year-on-year increase in 2017 following double digit growth across the network for each of the last five years.
Sean Kent, sales director, said, ‘We believe that we now hold around one third of the used car warranty market in the UK and this success has been built on getting the basics right.’
He continued, ‘What we will be looking for this year are dealers who understand this approach and have the same commitment to customer service as the other parts of the dealer network.’
A key area for expansion for the network in 2018 is likely to be franchise dealers, Sean added. At present, almost all of the dealers in the network were either independents or car supermarkets. However, there were a handful of franchise dealers involved and they have achieved an unexpected level of success through their association with the brand.
He said, ‘In targeting dealers, we have long worked under the assumption that franchisees are less interested in working with us and accessing the credibility of the RAC brand and its products because already they have the backing of major motor manufacturers.
‘However, we have had a number of franchise dealers proactively approach us to offer RAC warranties and other products, and they have reported unexpectedly strong results. We are therefore starting the process of targeting carefully chosen franchise dealers as prospects.’
