Recession Prompts Increase In Sales For RAC Warranty

Proving there can be a silver lining in the cloud of recession, RAC Warranty have experienced a one-fifth year on year increase in sales of warranties with the current economic climate resulting in high levels of interest in warranties from dealers of all kinds.

Ian Simpson, sales and marketing director at RAC Warranty, said that the tough economic conditions had prompted dealers to examine their warranty arrangements in detail, he explained: “As a company, 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.”

This latter point was proving especially important during the recession, Simpson reported, and underlined the correctness of the decision to launch RAC Warranty as a joint venture between the RAC and The Warranty Group in early 2008.

He said: “The strength of the RAC brand to used car buyers during the recession cannot be underestimated. While there are many warranty brands with some consumer recognition, none have the degree of reassurance of RAC Warranty.

“Used car buyers correctly recognise that the RAC would not put their name to a warranty unless it was an extremely high quality product that will provide them with a high degree of protection. This peace of mind is helping dealers to sell cars.”

Simpson added that there was a strong sense of momentum behind the RAC Warranty brand and that he expected warranty sales increases to continue. He said: “While it is difficult to make any definite forecasts during the recession, 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.”

Author: Amanda White, September 7, 2009
Filed under: Fleet news

RSS feed for comments on this post.