Buyers opt for longer used car warranties

A large numbers of used car buyers have been choosing to pay for a longer period, typically from three or six months up to 12 or 24.

RAC Warranty sales and marketing director Ian Simpson said it was a trend first seen when the credit crunch hit home in the middle of 2008.

"What used cars buyers really want to avoid at the moment is an unexpected bill, and by choosing a longer warranty they are providing a stronger safety net for themselves."

Simpson said that many buyers were also increasing their level of cover to a more comprehensive warranty.

"We have certainly seen a marked increase in the proportion of buyers choosing to upgrade from our standard Silver level warranty to Gold or Platinum level cover, again in order to enjoy a greater degree of peace of mind.

"Of course, all of these steps provide welcome additional income for used car retailers, especially after the poor market that was seen towards the end of 2008.

"It is difficult to say how long the current boom in used car sales will continue, and we agree with the prevailing view that it is more of a release of pent up demand rather than a sustainable increase, but it is a very welcome development for many used car retailers.

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