Warranty sales bounce back strongly
The RAC Dealer Network has reported that warranty sales by volume for the last six weeks are up 21.4% up on the same period in 2019.
Business generated from the network’s 1,500 retailers now almost exactly matches pre-lockdown levels seen in February and March.
Sean Kent, RAC director of sales at Assurant, which partners with the RAC in the aftersales sector, said: “We have seen a dramatic bounceback since used car and van sales resumed at the beginning of June and there are no signs of it abating yet. 2020 was already proving to be a record year for warranty sales across the network before the coronavirus crisis took hold and the resumption of momentum that we have seen over the last few weeks has been little short of astonishing considering the circumstances.”
He explained that feedback from across dealers who were members of the network had been that buyers were keen to re-enter the market but were also looking for a very strong used car and van proposition.
Kent said: “There are clearly relatively large numbers of people who are keen to buy, but they are notably more cautious about their purchase than before lockdown. Certainly, we are seeing an increased emphasis on the proposition being offered and it is noticeable that, for example, an ongoing trend to offer six months of standard warranty rather than three appears to have accelerated.”
