Research for the RAC Dealer Network has revealed more than a third of motorists don’t have sufficient savings to cover a major car repair bill or a warranty in place to offer protection.
When asked how they would meet the cost of an unexpected £1,000-plus repair, 43% say they could pay for it comfortably from savings and 19% had a warranty. However, 36% would have to borrow the money from family or friends, use a credit card or loan, or simply didn’t know how they would pay.
The survey of 1,164 respondents, carried out by Harris Interactive for Assurant, also asked how an unexpected bill of this kind would make them feel. In response, 37% said they would be “anxious and financially stressed.” Younger car buyers aged 18-34 believed they would be disproportionately affected, with 43% agreeing with this statement.
Kellie Grocott, RAC director of sales at Assurant, said: “These findings underline why used car dealers should always offer warranties and why used car buyers are interested in buying them. They offer a value-for-money way for motorists to protect themselves against potentially high, unexpected costs.
“They show how warranties continue to meet a very real need for everyday motorists and why, when dealers offer them to used car buyers in a way that makes their benefits clear, the levels of sales penetration achieved is generally very high.
“The fact that only around one in five motorists currently have warranty protection also shows the size of the potential market that remains for these products. This is an area where many more dealers could add to their own revenue stream, while meeting a genuine need for many more customers.”