Longer new and used car warranties are creating a growing desire among customers for continuous warranty cover, says RAC Warranty.
The company says that a growing awareness of lengthening warranties – including not just “lifetime” warranties in the new car market but also improved used car warranties - means that many customers are now reaching a point where they feel uncomfortable if they have no warranty in place for their current vehicle.
Ian Simpson, sales and marketing director at RAC Warranty, explained: “The mindset of new and used car customers is changing as a result of the way all warranties have lengthened - with three years now the minimum at new car level and a year provided with many used cars.
“What this has created is a situation where a warranty is no longer considered a nicety by the customer but instead is seen as something approaching a necessity. They have a desire for, and possibly even an expectation of, continuous warranty cover.”
Simpson said that this created an opportunity for used car dealers to offer an additional warranty package based around the length of time for which the customer expected to keep the vehicle, something which the company calls a ‘lifestyle’ warranty.
He added: “A warranty is a peace of mind product that provides the customer with a high level of reassurance at a time when they may not feel completely secure about their economic future.
“A lifestyle warranty is the ideal product for that mindset, creating a safety net for the customer over the life of their vehicle ownership and perhaps also planned to align with their vehicle finance and service plans.
“Certainly, the increasing demand for warranty cover is something that very much meets the needs of both motorists and dealers at this point in time.”