Growth in high mileage warranty sales in 2010

Analysis of Mondial Assistance UK’s January to June warranty sales figures for one of its manufacturer clients, reveals a 75% growth in the number of cars in the over 60,000 miles bracket being covered by warranty, compared to the same period in 2008. In a market that is still suffering from a lack of low mileage, quality used car stock, Mondial Assistance is seeing a shift in the age and mileage of cars being sold and urges dealers make the most of the opportunity.

“When it comes to the used vehicle warranties Mondial Assistance administers, we have seen a significant increase in the mileage of cars at the time of warranty registration,” says Liz Grindell, Warranty Sales Manager at Mondial Assistance in the UK. “This trend offers benefits for used car buyers and dealers alike. Franchised dealers stocking older vehicles can offer the benefits of a manufacturer Approved Used programme, giving prospective customers a wider choice of cars available to them.”

The interest in older stock means franchised dealers may be able to attract a new wave of customers who have not ventured into a franchised dealership before. Dealers should therefore be using warranty to its best advantage, as customers will want that little bit of extra reassurance when looking at buying a higher mileage or older vehicle.

Liz Grindellconcludes, “As part of our ongoing commitment to helping our manufacturer clients and their dealers retain customers, Mondial Assistance continues to develop new sales and aftersales solutions. We offer a range of post sale profit opportunities, which form part of a variety of products that sales staff can understand quickly and sell easily, whilst delivering benefits to the consumer. In an increasingly competitive market, all these added benefits can help dealers stay one step ahead of the crowd.”