Protecting consumer finances and confirming the importance of GAP insurance as a value-add sales proposition for the motor industry
New data analysis by Intelligent Motoring, parent company of MotorEasy, has revealed a 24% rise in the value of GAP insurance claims from January to September 2022, compared with the same period in 2021. As the cost-of-living crisis tightens, Intelligent Motoring is urging retailers, finance houses and motor related organisations to reduce the financial exposure of customers, through the addition of fair value GAP insurance to their aftersales proposition.
Duncan McClure Fisher, CEO of Intelligent Motoring commented, “Although used car prices are currently at an all-time high, the SMMT has reported a second consecutive quarterly decline in used car sales*. Whilst this is in part due to used car stock shortages, the cost-of-living crisis is believed to be taking its toll on big-ticket purchases, which is likely to reverse the upward trend seen in used car residual values.
“This could leave hundreds of thousands of consumers who bought a used car at a peak price, finding themselves caught in a negative equity trap, if they write-off their vehicle before their fixed-term finance agreement comes to an end. However, for a comparatively low monthly fee, car owners can invest in guaranteed peace of mind against this financial risk. Indeed, those who have already safeguarded against this predicament have benefited from higher value GAP insurance claim payouts, demonstrating its success as a value-add product. Those in the automotive industry recognising the importance of providing affordable protection for their customers are also building greater customer loyalty and retention for the future.”
Intelligent Motoring’s 5-star Defaqto rated GAP insurance can be purchased by consumers through the MotorEasy digital garage, which can be white-labelled to retailers, finance houses and vehicle membership organisations. These organisations also benefit from data on their customer’s ownership cycle as the digital garage builds a 360-degree picture of the car owner – from purchase to maintenance to seeking their next vehicle purchase. The digital garage also provides a channel for dealers to directly advertise their stock, while offering time-critical service, maintenance and repair solutions to customers. Providing ownership visibility empowers automotive organisations to build profitable, lasting customer relationships for the benefit of their business and customers.