8:05 am, July 21, 2008
OLDER car buyers’ credit crunch worries are leading to renewed interest in used car warranties.
Vulnerability to unexpected bills means dealers selling models older than five years are seeing increased demand for warranties.
As Ian Simpson, sales and marketing director at RAC Warranty, explained: ‘Buyers at this end of the market often have less flexibility in their personal finances than those spending more on a vehicle – so, in many ways, a warranty is more important to them, because they may not be able to afford an unexpected repair bill.’
‘The credit crunch has emphasised this fact – both because these buyers feel more vulnerable and also, in some cases, because their personal finances have actually deteriorated.’
RAC Warranty was launched in partnership with The Warranty Group in January. More than 200 independent used car retailers signed up to exclusively sell RAC Warranty products in the new brand’s first month of operation.
