The importance of DEFEND insurance products for car dealers increases

Coronavirus has hit many industries including the automotive industry. Car dealers thus have to search for additional sources of income, so earnings from DEFEND INSURANCE products are now more important to them than ever before.

Car sales during the pandemic and following the lockdown basically stopped and now are only slowly rebounding from long-term lows. Customers are, at the time of upcoming economic crisis, being careful and just slowly come back to showrooms of car dealers. Statistics of the Car Importers Association show a continued year-on-year decline in passenger cars by -23.6 % in July 2020.

DEFEND INSURANCE aims to contribute to satisfaction of end customers and maximization of our business partners’ income. Thus, we have asked them, how important our products are for them at this time.

Almost 75% of interviewed partners consider DEFEND products important or very important for their company in terms of additional incomes at this time, which is an ultimate testimony to how well-received our products are.

Even more important for them is the customer point of view. Pandemic and following restrictions have caused big uncertainty regarding future economy development, fears of losing jobs and about family finances in general. So it is no surprise, that almost 80% consider at this time the security provided by DEFEND insurance products as a key, because it helps decrease customers’ worries from financial loss or sudden repairs, which could hit a tight family budget.

"An extended warranty is an important argument, when selling used cars. For the period of our cooperation it is already a symbiosis, and is an integral part of our sales process. The offer of a warranty with a used car is for most of our clients positive and increases their feeling of calm at the thought of what could happen unexpectedly," says Josef Němec Head of Vehicle Sales and Financing at DAVO CAR.

DEFEND products now, more than ever before, significantly contribute to stabilization and help our partners always stay one step ahead, confirms Daniel Hončík, Head of Sales at AUTOCENTRUM DAN a SYN.

"Longtime cooperation with DEFEND INSURANCE is important for us not only financially but also with connection to service we provide. It increases the quality and level of the overall offer of our autocentre compared to the competition," said Hončík.

"We are very pleased that cooperation with our partners functions during this hard time. With many of them it is more intensive and I can say, that we do everything we can to help them overcome these difficult times. Recently, we have launched our online learning platform DEFEND LEARNING ACADEMY, to help them maximize profits offered by our products," says Andrew Quirke, Managing Director at DEFEND INSURANCE GROUP.

A survey among DEFEND INSURANCE partners took place in August 2020 and have been attended by respondents from the ranks of new and used cars dealers.