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Buyer Beware: Suitable Warranty Cover Essential for Consumers Buying Used Cars Online, says WMS Group

Buyer Beware: Suitable Warranty Cover Essential for Consumers Buying Used Cars Online, says WMS Group

  • 30% of Brits are likely to purchase their next used car online, without even seeing the vehicle in person or speaking to the seller
  • Without test drives and physical viewings, WMS Group is urging car dealers and consumers to make sure all vehicles purchased online come with suitable warranty cover
  • Two thirds (64%) of car buyers agree that extended warranties are important

With the lockdown spurring record numbers of Brits to buy their cars online without even seeing the vehicle, consumers are being advised to make sure their used car comes with adequate warranty cover or risk facing a hefty repair bill.

It comes as stark new research1 by WMS Group, one of the UK’s leading car warranty providers, found that a third (30%) of Brits are likely to purchase their next used car online, without even seeing the vehicle in person or speaking to the seller. Instead, car buyers said they will be relying on pictures or videos of the vehicle on a website – especially amid the ongoing coronavirus lockdown.

Yet, with the average car repair bill estimated to be £5742, WMS Group is calling on car dealers and consumers alike to ensure, that in the absence of physical viewings and test-drives, all used vehicles purchased online come with suitable warranty cover.

Craig Grant, Commercial Director of the WMS Group, said: “The ability for consumers to easily buy cars online during lockdown is undoubtedly keeping the industry going whilst showrooms remain shut. However, this shift in purchasing behaviour – where consumers are buying cars without even seeing or test-driving them – means warranty cover is now more important than ever in giving dealers and customers confidence and peace of mind.”

“At a time when many people are facing financial worries – and a third of Brits have less than £600 in savings3 – consumers should be checking that they buy a car with a valid warranty to give them protection and peace of mind that expensive mechanical failures and repairs are covered.”

“Our own research shows two thirds (64%) of car buyers agree that extended warranties – which last up to three years covering all mechanical and electrical issues with multiple levels of cover available – are important yet many may not be offered this at the point of sale.”

The WMS Group’s research shows the extent in which online sales platforms are taking over the used car market – further accelerated by the coronavirus pandemic where contactless online car sales have soared.

Craig adds: “It’s clear that we’re at the precipice of an e-commerce revolution in the car buying market – and commendable that dealer groups have invested heavily in making the online purchasing journey easier and simpler than ever before. Yet, as this segment grows and evolves rapidly, it’s important that the benefits of taking out warranty and motor protection products are still highlighted as, ultimately, this will benefit the consumer.”

Notes:

1 WMG Group 2021 Survey of 1,000 consumers
2 https://www.insurancebusinessmag.com/uk/news/auto-motor/revealed-how-much-the-average-uk-driver-is-spending-on-repairs-each-year-97756.aspx
3 https://www.finder.com/uk/saving-statistics#:~:text=Key%20statistics,-1%20in%2010&text=In%202020%2C%20the%20average%20person,11%20million%20in%202018%2D2019.
4 https://www.am-online.com/news/market-insight/2021/01/26/contactless-online-car-sales-to-soar-amid-covid-19-pandemic-in-2021

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