The RAC has confirmed that it will target franchise dealers to join the RAC Dealer Network in 2018 in offering RAC branded warranties and other value-added products.
The 1,300 dealers that currently make up the RAC Dealer Network are almost all either independents or car supermarkets. The few franchise dealers that have been on board have experienced an unexpected level of success through their association with the brand.
Sean Kent, sales director at the RAC Dealer Network, commented, “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.
“While it is overwhelmingly probable that franchisees will always only ever form a minority element of our network, they will still access substantial benefits by working with the RAC and we believe there is definitely a potential market there.”
The RAC brand looks to be helpful to smaller franchise dealer networks, and those where the manufacturer approved used programme lacked immediate car buyer recognition. This may be ever more important in 2018, as Sean Kent explained: “Franchise dealers report to us that the presence of the RAC name gives customers a definite, additional sense of trust. Looking into 2018, when used car buyers are very likely to be facing tougher economic conditions, this could be an important differentiator for individual dealers and dealer groups.”
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