Sales of value-added products (VAPs) such as warranties, service plans and MOT insurance have jumped over recent years, according to retail technology business iVendi.

Its findings show that since the beginning of 2021, the number of motor finance applications made through its platform that include at least one add-on product have risen by 65%.

The average value of these products included with each paid out motor finance application has also increased by 66%, from £384 to £638, while the percentage of dealers among iVendi's user base submitting VAPs with deals increased from 14% to 19%.

Darren Sinclair, CCO at iVendi, said the number of finance quotes generated that included warranties sold in 2021 increased by 37% last year. “This is a substantial and arguably important source of revenue at a point in time when dealer margins are held to be under an increasing amount of pressure,” he said.

“Of course, dealers with their own workshops can build on this initial sale by capturing any repairs that may be necessary under the warranty, adding to the potential for profit in the longer-term.”

The findings were captured by iVendi’s Digital Deal technology which generates a near-instant proposition based around a specific vehicle including finance and VAPs and which allows the customer to look at the products in detail in their own time.