Recession’s 20% rise
September 4th, 2009 by Richard Aucock
WARRANTY sales by RAC Warranty have increased by a fifth compared to this time last year, says the firm.
This is because car buyers are showing renewed interest in taking out warranties, due to the recession.
It is not just plain cover-all warranties that are driving demand, either. Warranties of all types are being signed up for – such as MOT protection and GAP protection.
An extra emphasis on maximising profit from warranties is also helping, says RAC Warranty’s Ian Simpson.
‘We have benefitted from this trend in two ways – by dealers looking to maximise their warranty revenues with their current supplier, and by changing their warranty provider if they do not feel they are receiving the right support.
‘The warranty solution that we provide to dealers appears to be ticking all the right boxes in the recessionary environment – from strength of cover to pricing, and from easy administration to brand recognition.’
Indeed, it’s that very brand profile that is helping the firm fully exploit opportunities produced by the recession. Customers, it seems are preferring to deal with more ‘reassuring’ brands, such as RAC Warranty.
It’s good progress for a venture between RAC Warranty and The Warranty Group that began last year.
‘We continue to sign up dealers, from independents to major dealers groups, at a consistent rate, and we can see no reason why this will not continue in the medium term.’