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Warranty sales booming

Time 13 years ago

INCREASED interest in ‘safety net’ products has helped a used car warranty company’s 1st year of trading.

RAC Warranty marks its 1st year in business – by revealing that it has signed up 456 dealers.

The business was launched in December 2007 and started selling in January 2008. It is now, says the company’s chief, a ‘leading player’.


Sales and marketing director Ian Simpson reveals that it has been one of the toughest years possible to launch a new product.

However, a combination of good product and the RAC brand has helped it succeed. This will carry through to its 2nd year, too.

‘’Safety net’ products such as warranties often prove popular during recessions.’ This is because customers are concerned with security and reassurance.

‘We are aiming to work with dealers to ensure that we exploit every possible opportunity in order to prosper, despite the difficult conditions.


‘While any significant revival of the used car market is unlikely during 2009, we will be working hard to support dealers, with initiatives such as new training programmes, that will help to maximise warranty penetration.’

Both FSA compliant and non-FSA compliant dealers are served by the warranty company. Non-regulated dealers are offered a product called RAC Service and Maintenance.

Compliant dealers can provide a range of products – varying levels of parts and labour cover, GAP insurance, tyre and MOT failure insurance.

A further tool for dealers is that products are sold not on age or mileage, but on minimum purchase price.

Safety net catches profits

Service Plan Champions

Used repair bill

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Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.

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