Customers will be more open to warranty and insurance products as they crave greater security amid the uncertainty of post-Brexit Britain.
Ian Simpson, European managing director of Automotive at The Warranty Group, said there were widespread predictions of a fall in consumer confidence and that this would affect how used cars were sold.
The situation could also bring opportunities for car dealers to offer add-on services which promise consumers a more predictable level of spend on motoring.
Simpson said: “It appears to be almost universally accepted that the UK will see a period of economic uncertainty that will affect customer attitudes.
“The last time we saw a comparable situation was during the economic crash of 2008 and, at that time, a long-term trend began towards dealers offering longer and more comprehensive warranties.
“Used car buyers wanted as much piece of mind as possible around their purchase and this is something that is likely to happen again. At a time when consumer confidence is falling, buyers want to avoid unexpected motoring costs as much as possible.”
Simpson said that it was very difficult to estimate how long the Brexit decision would affect the UK economy and car market, and to what degree, but concluded: “Dealers are very good at adapting to conditions and we believe that enhancing the overall customer proposition, including improving the warranty element, will be one of the key ways in which they respond.”
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