Warranty demand rises for budget used cars

The sale of budget priced used cars are increasingly being driven by the provision of warranty cover, according to research by RAC Warranty.

The company said retailers specialising in the sub-£4,000 sector are finding customers are placing warranty cover near the top of their list of requirements.

"Most customers shopping for a used car in this part of the market are primarily looking for reliable daily transport, especially at this point in time when they are starting to feel the effects of the recession,” said Ian Simpson, sales and marketing director.

"Because of this, they want a high level of reassurance from the warranty that comes with the vehicle and are frequently seeking clarification about exactly what is covered. They want to feel as safe from unexpected costs as possible."

According to Simpson the trend has benefited non-FSA registered dealers who are allowed to sell specialist service and maintenance products which are not viewed as traditional warranties by the authority.

"Non-FSA dealers cannot offer standard warranty products but they can provide specialist service and maintenance arrangements that serve a similar purpose. In the kind of price sector where non-FSA dealers operate, having something that brings a high degree of reassurance is proving essential in supporting used car sales while the recession starts to bite,” he said.

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