Efforts to make used cars more attractive with warranty boost
Longer warranties could soon be applied to used cars to make them more appealing and closer to the new car market.
The Warranty Group, a provider of extended warranty solutions, wants more comprehensive warranties to come as standard in used car deals.
Ian Simpson, sales and marketing director, said it was about getting buyers a better deal.
He explained: “The continuing shortage of used cars and the resulting increase in prices mean that buyers are, effectively, getting less for more.
“As a result, dealers of all kinds are having to look at ways of making their used car proposition more attractive and increased warranty provision is one solution.
“Customers have been voluntarily opting for longer and more comprehensive warranties since the start of the recession so building these products into the standard used car offering makes some sense.”
Impact
Simpson added that there was also a knock-on effect from increased new car and manufacturer approved warranty cover that eventually even saw the most humble independent garage consider the subject of warranties.
He said: “If a manufacturer extends their new warranty to five year or adopts an approved used car warranty that effectively provides new car levels of cover, then it inevitably has an impact elsewhere.
“What it eventually means is that it raises the level of expectation surrounding all used car warranty provision and this is something to which dealers of all kinds are likely to respond over time.”
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