Used car buyers are specifying longer warranties with higher levels of cover, a trend that began during the recession and continues to grow.
RAC Warranty says that while sales of used cars have grown since the depths of the recession, the trend is still for longer warranties with more cover - displaying mixed consumer confidence.
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“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," said Ian Simpson from RAC Warranty
“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."
Simpson said that the used-car warranties trend was an understandable response to the recession, with the cost of buying a vehicle offset by the upgraded warranties, which can counteract fears of unexpected costs.
"For the used car buyer, it provides a safety net that brings a high degree of peace of mind, while it is also a profit opportunity for the dealer, both in terms of initial spend and the subsequent capture of any repair work that arises," concluded Simpson.