F&I Management & Training

Glass's Guide estimates that the one-to-two year old car parc will reduce by 600,000 cars in 2010 because of declining new car sales.

It said franchised dealers will increasingly source older cars with higher mileages.

MB&G operations director Kevin Pearce said sales of the firm's warranty products were up by a fifth because dealers were stocking an increasing proportion of older, higher mileage cars.

"Sales of our products have increased by 19 per cent during the first six months of this year, as customers seek out additional peace of mind on their vehicle purchase."

Warrantywise also said it has seen a steady rise of dealer warranty sales throughout 2010.

"Many dealers have perfected the upsell aspect of the warranty product we offer and are making a healthy profit from their warranty sales," said Warrantywise managing director Lawrence Whittaker.

RAC Warranty, sales and marketing director Ian Simpson said: "Clearly, used car sales have picked up considerably since the depths of the recession, indicating growing consumer confidence. They have been a key source of dealer profitability during the last year.

"However, while these buyers are now feeling confident enough about their economic prospects to buy a car, they are still nervous about the possibility of any unplanned spending in the future, hence the continuing popularity of upgraded warranties."

DATED: 09.09.10

FEED: MT