Extended warranty offers benefit used car dealers
Dealers have been successfully attracting attention to less popular, older used vehicles by backing them with extended auto warranties, the Warranty Group says. The firm commended the decision a year ago and says that it has been a smart move on the part of used car dealers, notes the Warranty Group's Sales and Marketing Director, Ian Simpson.
"Used car customers have been seeing their buying power diminish for some time as stock shortages have pushed up prices and this general trend, if anything, has accelerated in 2012" Simpson comments. "Dealers are therefore looking at ways of creating interest in cars that are often much higher mileage and older than the customer is expecting within their price range and warranties are a key way of doing this."
Simpson believes that stronger warranties go some way to providing a form of financial safety net for purchasers who may be dubious about a vehicle's history and that it is very important for dealers to understand the psychology of the common customer at a time when unemployment is so high and the choice of cars that are available may not live up to expectations.
Simpson adds that one of the most important elements in the decision to buy a used car is the belief that such a vehicle is not likely to spring any unexpected nasty financial surprises and that the best way to reassure customers of this is to provide an extended Car Warranty.
published: 09/03/2012 11:00:01