Standard 12-month warranty fuelling sales at Dickson’s Carzar

Inverness-based Carzar is crediting its standard 12-month RAC Warranty with driving sales and building trust among customers.

Launched in late 2023, the Carzar project was launched with a £1 million investment to complement Dickson’s of Inverness’ existing Kia, Suzuki, MG and Nissan dealerships.

“Our thinking behind Carzar is to create a completely different, much more relaxed car retail environment,” Jim MacKenzie, a director at Dickson’s explained. “For example, our indoor space 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 prepared to the same standards as our franchise-approved schemes. The standard 12-month RAC Warranty is a big part of our proposition. It’s a platinum plus level of cover - far exceeding what most used cars offer - and the RAC brand brings a huge amount of credibility. It’s all about trust.”

Carzar’s stock caters to a broad range of customers, focusing on vehicles priced between £6,000 and £12,000 but also retailing higher-end models exceeding £30,000.

MacKenzie noted that customers have shown a strong interest in extending their warranties, with around 70% opting to upgrade to longer cover.

“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.”

Carzar currently stocks around 50 vehicles but, following its strong first-year performance, Dickson’s is considering expanding to larger premises and potentially opening additional branches.

“The whole project has been very successful,” MacKenzie said. “We believe it has the potential to grow, both by expanding our core site and launching 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, praised the innovative approach taken by Dickson’s.

“We have a longstanding relationship with the Dickson’s group and are very pleased to support the Carzar project,” Coomber said. “It’s one of the most imaginative ventures we’ve seen in recent years.

“The inclusion of a long and comprehensive standard warranty has proven to build an effective upgrade path, meeting customer aspirations for extended cover while also increasing dealer revenue.”

The RAC Warranty is sold exclusively through the RAC Dealer Network, which includes more than 1,400 motor retailers across the UK.