A leading warranty company has seen a 20% rise in the number of cover packages it has sold for motor homes, amid changing consumer behaviours.
Warranty Solutions Group (WSG) has reported a shift in the motor retail sector, with growing numbers of car and LCV dealerships expanding into motorhome sales to unlock new revenue streams – a subject that was discussed earlier this year on the Car Dealer podcast.
According to the company’s latest data, there has been an estimated 20% year-on-year increase in car and van dealers requesting motorhome warranties, with dealers capitalising on high consumer demand, healthy margins and the long-term growth potential of this niche sector.
The UK motorhome market experienced a 37% surge in sales between July 2022 and March 2023. While new registrations have stabilised following the post-Covid boom, demand continues to outstrip supply across most regions, with used models in massive demand.
Dave Rogers, head of motorhome products at WSG, said: ‘In some cases, dealers can double their investment. But these profits don’t come easy. Selling motorhomes successfully takes a very different approach, demanding commitment, expertise, and the right infrastructure. It’s precisely why so many dealers dabble, only to quietly retreat when they realise the scale of the challenge.
‘You need to be in it for the long game. Unlike the quick decision-making typical of car buyers, motorhome customers take their time and the buying cycle can stretch over a much longer period.
‘Customers can be cautious, and the term “tyre-kicker” gets used a lot. Dealers need to invest a huge amount of resources, and that’s before they even get to the workshop challenges.’