RAC woman and Ford Fiesta carRAC woman and Ford Fiesta car


More than a third of drivers don’t have savings to cover the cost of a large vehicle repair

  • 36 per cent of drivers surveyed said they wouldn’t have the money to pay for a repair bill of more than £1,000
  • These respondents said they would have to borrow money from friends or family
  • The majority of motorists would use savings will less than a fifth have a warranty

Time 11:18 am, September 2, 2021

More than a third (36 per cent) of motorists have revealed they don’t have savings to cover a large repair bill on their vehicle.

The research, conducted for the RAC Dealer Network and Assurant, asked 1,164 respondents how they would pay for an unexpected car repair bill of more than £1000.

The majority said that they would be able to afford this from their savings, while a further 19 per cent had a warranty, but more than a third said they would have to borrow the money from family or friends.

The respondents were also asked by Harris Interactive, who conducted the research, how a bill like this would make them feel and 37 per cemt said they would be ‘anxious and financially stressed’.

Younger car buyers aged 18-34 believe they would be disproportionately affected, with 43 per cent agreeing with this statement.

Kellie Grocott, RAC director of sales at Assurant, said: ‘These findings underline why used car dealers should always offer warranties and why used car buyers are interested in buying them. They offer a value-for-money way for motorists to protect themselves against potentially high, unexpected costs.

‘They show how warranties continue to meet a very real need for everyday motorists and why, when dealers offer them to used car buyers in a way that makes their benefits clear, the levels of sales penetration achieved is generally very high.

‘The fact that only around one in five motorists currently have warranty protection also shows the size of the potential market that remains for these products. This is an area where many more dealers could add to their own revenue stream, while meeting a genuine need for many more customers.’

Rebecca Chaplin's avatar

Rebecca has been a motoring and business journalist since 2014, previously writing and presenting for titles such as the Press Association, Auto Express and Car Buyer. She has worked in many roles for Car Dealer Magazine’s publisher Blackball Media including head of editorial.

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