What is the most important factor that you take into account when you buy a new car? Is it the performance? The fuel economy? Or the cost of ownership of the vehicle?
A 2012 survey found that fuel economy was the most important factor for drivers when choosing a new car. However, ‘quality’ came in second place, suggesting that drivers are looking for a reliable car that isn’t going to cost a fortune in repairs and maintenance.
Many people choose their new car based on the quality of the warranty that is available. Now, a leading car expert believes that the used car market may be set to offer similar warranties to give second hand car buyers peace of mind. Keep reading to learn more.
Longer warranties could accompany cheap car leasing deals to attract mid range buyers
Many mid-range cars now offer excellent Car Warranties. Brands such as Hyundai and Kia now offer warranties that run for between five and seven years, giving drivers the peace of mind that they won’t face huge unexpected bills for repairs and maintenance.
Many car leasing and contract hire agreements also include the option of adding a ‘maintenance’ contract. This means that the costs of repairs and servicing are included in your car lease agreement.
Now, a leading warranty expert believes that used cars could be set to follow the example of the new car market and offer longer warranties. Ian Simpson has highlighted the increasing range of new car warranties that offer more than the standard ‘three years and 60,000 miles’ by offering four years to lifetime warranties.
He said: “At first glance, it appears counter intuitive that you can get more than twice the warranty length when you buy an £8,000 hatchback than if you many spend multiples of that amount with a prestige manufacturer.
“However, it really makes perfect sense. The buyer of the £8,000 car is probably working on a tight budget and is frequently planning to hold onto their car for a while. Having the reassurance of a long warranty is important to them as an element in the purchase.
“This is something that very much works in the mid-market where buyers are usually looking for practical and effective transport for themselves and their family that won’t spring any nasty financial surprises.”
As the 2012 survey from Consumer Reports found, quality is one of the key factors that many drivers take into account when buying. So, if a used car offered the same type of warranty as a new car, this would be likely to tempt buyers looking for a cheap car leasing deal that also minimized their chance of unexpected repair bills.
Mr Simpson added: “Used car buyers with perhaps £3,000-£6,000 to spend on a used car actually have a very similar mind set to the mid-market new car buyer. What they want is protection from unexpected bills.
“Therefore, it is possible that offering longer warranties is something that could have a real impact in this sector. An independent used car retailer offering a two year warranty on a £5,000, five year old family car would have a much stronger proposition than a competitor offering six months.
“Clearly, there is an additional cost involved but it does create a package that meets customer needs.”