The availability of cheap new car finance has forced used car dealers to improve their customer propositions, according to RAC Warranty, a division of the UK motoring organisation RAC.
With the cost of new and used cars getting closer on a monthly basis, dealers have had to explore new ways to make used cars attractive the warranty provider said.
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Ian Simpson, sales and marketing director at RAC Warranty, said: "Certainly, the price differential between some new and used cars, model for model, is becoming smaller, especially on a monthly payment basis for cars that are less than two-three years old."
"Of course, many of these vehicles go straight into manufacturer approved used schemes but those that don’t and are near the end of the manufacturer warranty need to be supported by a convincing package in order to provide buyers with the right degree of reassurance."
One of the methods dealers have explored is to sign up to assured used car programmes, which offer inspections and the reassurance to customers that the vehicle is safe and reliable, and others are to offer extended warranty programmes.
mike.cobb@timetric.com
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