12-month warranty is driving sales at Dickson’s Carzar project

Including a 12-month standard RAC Warranty on all used cars is helping to drive sales at Inverness-based Carzar, a recently-launched part of the Dickson’s dealer group.

The project was created in late 2023 and is designed to complement the company’s existing franchise dealerships, explained Jim MacKenzie, director.

“Our thinking behind Carzar is to create a completely different, much more relaxed car retail environment. For example, our indoor feels more like a café bar and is free of cars, while our staff wear jeans and hoodies. 

“The Dickson’s brand is very well known here and we are able to offer non-franchise used stock that is prepared to the same kinds of standards as we apply to our franchise approved used schemes.

“For that reason, the standard 12 month RAC Warranty is a big part of our proposition. We provide the top tier Platinum Plus level of cover, the length of the warranty is much more than provided with the vast majority of used cars, and the RAC brand brings a huge amount of credibility. It’s all about trust.”

The Dickson’s stock profile is centred on vehicles in the £6,000 to £12,000 range, often with appeal to younger drivers, but also frequently retails prestige branded cars priced at above £30,000. 

Jim said: “What we have found is that the customer base that we are attracting has an unusually high propensity to upgrade their warranty to longer cover, at around 70% of everyone who buys a car from us. It seems to be something that fits in with the Dickson’s and RAC brands, and the overall quality of the stock that we offer, as well as the effectiveness of our sales process.

“We introduce the subject of warranties and the advantages of extended cover, and customer interest tends to be naturally high. Our consumer profile seems primed to recognise the advantages of a longer warranty for their vehicle, and we are almost pushing at an open door.”

Around 50 cars are available for sale at the Carzar site at any one time but, following initial success during the first year, Dickson’s is already looking at the possibility of moving to bigger premises.

“The whole project has been very successful and has, we believe, the potential to be expanded both in terms of expanding out core site and further Carzar branches elsewhere. It’s an exciting development for us.”

Lee Coomber, RAC director at Assurant, which partners with the RAC in the aftersales market, said: “We have a longstanding relationship with the Dickson’s group and have been very pleased to become involved in the Carzar project. It is one of the most imaginative we have seen in recent years.

“The proposition that has been created shows how offering an unusually long and comprehensive standard warranty can help to build an upgrade path that is very successful, meeting both customer aspirations for extended cover and increasing dealer revenue.”