Dealer are seeing a trend towards longer standard warranties being sold on used cars
The development is being brought about by dealers building stronger propositions and a general desire among consumers for longer warranty cover in less certain economic conditions, said Sean Kent, head of account management at Assurant.
“The most common standard warranty across the used car sector remains three months but we are seeing signs that this is moving towards six months.
“Certainly, during 2018, we recorded a reduction of around 10% in sales of three month cover and a corresponding increase in six months.
“The key driver behind this is that used car retailers are increasingly creating propositions that create a high degree of reassurance for customers and longer warranties have an important role to play in this process.”
Kent said that offering a longer standard warranty was an important indicator to consumers that a retailer had a high degree of faith in the vehicles that they were offering for sale.
“Providing a longer warranty as standard makes a statement to used car buyers about the kind of business you are and the quality of cars and vans that you offer.
“It indicates that you are determined to support the customer in the long term if unexpected motoring expenses arise and that you want to build a longer term relationship based on trust and strong customer service.”
Sean added that longer warranties were being increasingly provided across the RAC Dealer Network because they were very much in keeping with the ethos of the brand.
“The RAC brand enjoys unrivalled levels of recognition and credibility in this sector. Working with Assurant, we work hard to underline this advantage with excellent marketing and point of sale materials to promote the customer benefits of a longer term RAC warranty.”
There are now 1,360 members of the RAC Dealer Network.
Assurant is a Fortune 500 company that operates in 21 countries and provides motor warranty products and supporting infrastructure sold in the UK under the RAC brand.