3:18 pm, November 10, 2020
Used car buyers are wanting significantly longer and more comprehensive levels of warranty cover.
That’s according to the RAC Dealer Network, which says sales have shown that the average length of its RAC-branded Platinum Plus warranty has risen dramatically from an average of 9.38 months in 2019 to 15.79 months this year.
The figure comprises the length of the standard dealer warranty plus any upgrade chosen by the customer.
Platinum Plus is the highest level of cover among the four-product range and the lengths of the other levels of cover sold by the RAC Dealer Network have hardly changed.
Similarly, sales of the Platinum Plus warranty have more than doubled, making up 8.2 per cent of total warranty sales across the network to date in 2020 versus 3.6 per cent in 2019.
In contrast, its Silver, Gold and Platinum warranties are all taking lower percentages of the overall share.
Kellie Grocott, RAC director of sales at Assurant, which partners with the RAC in the warranty sector, said: ‘We don’t have evidence to directly link this to the coronavirus crisis, but it is generally accepted in our sector that during times when used car buyers might feel more economically vulnerable, sales of motor warranty products offering higher levels of cover will tend to increase.
‘There is a desire on the part of consumers for better protection against unexpected motoring costs.
‘That is the most likely explanation for what we are seeing now. While the current boom in used car sales clearly suggests that relatively large numbers of buyers are happy to spend money on a used car, they want reassurance that a comprehensive safety net is in place.
‘Few members of the RAC Dealer Network offer Platinum Plus as a standard part of their proposition, so the vast majority of these sales will be consumers choosing to actively upgrade to a longer and more comprehensive length of cover, typically from Silver or Gold warranties, at the time of purchase.’
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