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RAC warranty sales up one fifth

Sales of RAC warranties are up 20 percent year-on-year according to the company which said the recession is prompting high levels of dealer interest in warranties.

Ian Simpson, sales and marketing director at RAC Warranty, said tough economic conditions had prompted dealers to examine their warranty arrangements with the objective of maximising revenue.

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."

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.”

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