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Longer warranties in used car market likely

 

The used car market is likely to move towards longer, more comprehensive warranties as a standard part of their offering during the next few years, says The Warranty Group.

The company points out that the shift is part of a long term trend to make the used car buying experience as close to new purchasing as possible, especially for manufacturers and larger independent dealers.

Ian Simpson, sales and marketing director, said: “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.”

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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