Fleet News has reported that there has been an increase in people that are happy to buy second hand cars with higher mileages; however buyers are also looking to sellers to provide reassurances in the form of after-sales products. RAC Warranty have claimed that the high price of cars is leading to potential buyers becoming inclined to buy cheaper vehicles with more mileage, but it is also leading them to demand ‘safety nets’ for their new vehicles, such as warranties or MOT insurance so that they are assured the car will continue to run for an extended period of time.
Ian Simpson, the sales and marketing director for RAC Warranty explained that “this trend is very much being driven by necessity. New and used car prices have continued to rise faster than most wages and a customer whose last purchase was a 30,000-40,000 mile used car may now find that their finances only stretch to one that has covered 50,000-60,000.” Simpson went on to say that “as the motor trade well knows, the build quality of 21st century cars mean that this kind of stock can still be made very presentable and clearly has much life left in it. Customers recognise this fact but the feedback we are receiving suggests that they also want the reassurance of the right support products in order to buy.”
Due to these changes in the second hand car market, more and more dealers are now offering longer and more comprehensive warranties as standard, or are selling them as upgrades. But it is important for all drivers to make sure they have adequate car insurance on any type of vehicle they intend to buy. If a car has a higher mileage it may be cheaper, but if it constantly needs to be repaired then it could cost you more in the long run. As Simpson puts it “Someone spending £8,000 on a three year old mainstream ex-fleet car with 60,000 miles will feel that they are spending a substantial sum and will want to feel that the car will not bring them any unexpected bills.”