It has been revealed that people buying used cars are continuing to request extended guarantees, even though there is now a greater amount of confidence in the sector. According to RAC Warranty, buyers started to upgrade their car warranties during the extended economic downturn as a way of providing protection against unexpected costs. However, the company says this trend is continuing, even though there has been a general upturn in business outlook.

Ian Simpson, Sales and Marketing Director at RAC, said Clearly, used car sales have picked up considerably since the depths of the recession, indicating growing consumer confidence, and have been a key source of dealer profitability during the last year. He pointed out that, although buyers are showing more confidence about their economic prospects in purchasing a car, there are still concerns over any unplanned future spending, which has helped to maintain the popularity of upgraded warranties.

An earlier report, by vehicle history specialist HPI and the Finance and Leasing Association, also found that car buyers should be encouraged to conduct a full vehicle history check before purchasing a used car. They issued a warning to car buyers that financial information is not present in every vehicle history check, and that a car purchased without realising there was outstanding finance on it could mean the new owner loses both the car and the money that was paid for it.