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Dealers are increasingly being asked to quote for warranty packages to cover the length of time customers plan to keep their car according to RAC Warranty.
The company said the economic downturn has prompted some buyers to consider longer cover to reduce the risk of facing unplanned bills, rather than purchase standard 12 month packages.
“The thinking behind these initiatives is that the customer buys a used car and, at that point, makes a decision on how long they plan to retain it. So, if they estimate it will be three years, the dealer offers a warranty tailored to that length,” said Ian Simpson, sales and marketing director.
“From the dealer point of view, this arrangement delivers additional profit at the time of the sale and then improves the possibility of an ongoing aftersales relationship with the customer throughout the three years, and even creates the potential for a further used car sale when that period comes to an end.”