Wednesday, 1 February 2012

Sales of warranties were on the up in 2011, according to Mondial Assistance

It saw an 8 per cent increase in used car warranty sales in 2011, compared to the previous year.

Over the past year, the firm has seen a shift towards older used car owners financially planning for unexpected repair expenses.

In 2011, 63 per cent of one scheme’s total warranty registrations were applied to cars over three years of age, compared to just 49 per cent in the previous year.

Mondial said a monthly pay-as-you-go offer was a key factor in the 18 per cent increase in extended warranties in 2011, compared to 2010.

Sales of warranties generally have been on the rise as buyers switch to used cars rather than new.

The used car parc is also getting older due to contracting new cars sales in recent years.