Warranty spend continues
May 27th, 2010 by Richard Aucock
USED car buyers are returning to the market but also continuing to seek the protection of a longer warranty.
The trend to choose longer and better warranties than before the recession has not abated, reveals RAC Warranty.
This is despite a used car sales upturn showing market confidence in general is much better than it was.
RAC Warranty director Ian Simpson reckons it is because car buyers are still expecting tough times ahead.
‘Clearly, used car sales have picked up considerably since the depths of the recession, indicating growing consumer confidence, and have been a key source of dealer profitability during the last year.
‘However, while these buyers are now feeling confident enough about their economic prospects to buy a car, they are still nervous about the possibility of any unplanned spending in the future, hence the continuing popularity of upgraded warranties.’
In other words, people are less worried about their jobs, and while they can afford the extra cost of a newer car, they can’t stretch to any additional bills.
‘They are still concerned about the prospect of unexpected costs and the idea that perhaps they may have to find a four figure sum for a major repair is a source of worry.
‘That is where upgraded warranties have a role to play.’
Not to mention the initial commission for the dealer and opportunity to quote for any future repair work, he added…
Tags: aftersales, rac warranty, used, warranty