Research and Markets: Extended Warranties for New and Used Cars in Europe

DUBLIN--Research and Markets (http://www.researchandmarkets.com/research/dda3e4/extended_warrantie) has announced the addition of the "Extended Warranties for New and Used Cars in Europe" report to their offering.

“Extended Warranties for New and Used Cars in Europe”

Finaccords report titled Extended Warranties for New and Used Cars in Europe amalgamates comprehensive and in-depth research covering 26 countries in Europe, namely: Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, France, Germany, Greece, Hungary, Ireland, Italy, Norway, Netherlands, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine and the United Kingdom. Based on a survey of 1,370 dealers in these countries, in addition to an investigation covering up to 37 manufacturers and importers in each territory, the study delivers unique insights into the market for extended warranties for new and used passenger cars bought by consumers. Moreover, the research also generates data describing the size, in terms of gross premiums, for the market for extended warranties for new and used cars in each country.

In addition to this unique market data, the survey results are also used to measure the extent to which automotive dealers and manufacturers actually organise and intermediate extended warranties in each country, to calculate average customer take-up rates for extended warranties at the point of sale, and to understand relationships between manufacturers or importers and external warranty providers for branded or endorsed programs.

You may be able to use this report and the PartnerBASE that accompanies it in one or more of the following ways:

understand the current size and future potential of the market for extended warranties for new and used cars on a Europe-wide basis;
appreciate the extent to which dealerships favour promoting extended warranties as opposed to other ancillary automotive financial services such as creditor insurance and GAP insurance; - benchmark the degree of competitive intensity recorded by the research for distributing extended warranties through the point of sale;
evaluate the potential for establishing partnerships with automotive brands or their local importers for branded or endorsed extended warranty propositions;
track the involvement in this field of leading national and international competitors including Car Garantie, Carlife, DSSA, Europ Assistance, eurotax Garantie, Fragus Warranty Group, Mapfre Warranty, Mondial Assistance, RAC, Real Garant and The Warranty Group.

Key Topics:

0.0 EXECUTIVE SUMMARY

Extended warranties for new and used cars amount to a 2.04 billion market across Europe
with dealerships in Germany most likely to offer warranties to their customers
Dealers are most likely to adhere to captive propositions in Romania, Poland, Spain and Belgium
although a significant market for non-captive warranties is developing in a majority of countries
Among new car buyers, average take-up rates, at 6.8%, are least developed in Denmark
with a Europe-wide overall take-up rate of 15.6% having been generated by the research
Schemes organised by manufacturer brands or local importers are most widespread in the UK
Relationships with providers of extended warranties seem normally to be made at the national level
Revenues from extended warranties can help manufacturers to reduce total warranty costs
albeit there are a variety of challenges to overcome in order to grow profitable programs

1.0 INTRODUCTION

What is this report about?
The reports focus is on extended warranties related to the sale of passenger cars to individuals
Rationale
Financial services provision is crucial to the profitability of automotive entities
and extends to a range of insurance, warranty and assistance concepts
although published information on these markets remains at a premium
Changes in the structure of the dealer channel have implications for automotive financial services
Methodology
Dealer survey
Manufacturer survey
Definitions
Finaccord
PartnerBASE

2.0 EUROPEAN OVERVIEW

Introduction
Passenger vehicle data
Europes passenger car parc is characterized by slow but predictable growth
Countries in Eastern and South-Eastern Europe provide the best growth opportunities
with sales to commercial customers and fleet buyers outstripping the regional average
The boom in imported vehicles helps Poland to achieve rapid growth in sales of used cars
There is ample scope for growth in sales of used cars in Eastern and South-Eastern Europe
New vehicle registrations are characterised by patriotic tendencies in several countries
although brands such as Honda, Hyundai, Suzuki and Toyota are all making steady progress
Motor dealer data
The number of franchised dealers begins to grow following the low point reached in 2003
with the sale efficiency of five countries setting the standards for the rest of Europe
Dealer survey results - extended warranties
Dealerships in larger, wealthier markets are the most likely to promote extended warranties
Dealers in several countries are typically open to working with more than one warranty provider
Non-captive warranty provision is developing as a result of the activity of several specialist firms
some of which operate internationally and some of which also run branded schemes
Average take-up rates for extended warranties vary significantly between different countries
with automatic packaging boosting the figure in a number of countries, including Greece
Dealerships enjoy the advantage of being the natural channel for extended warranties
Overall take-up rates fall below one in ten new car buyers in a significant number of countries
Buyers of used cars in Germany are most likely to acquire warranties at the point of sale
with those in France, Italy, Portugal and Switzerland also scoring high overall take-up rates
Manufacturer/importer survey results - extended warranties
Branded warranty schemes are most in evidence in the UK and least widespread in Ireland
Market size - extended warranties
The European market for extended warranties is worth approximately 2.04 billion
with the largest five countries accounting for well over three quarters of the market value
Manufacturers captive finance operations
Financial services constitute a crucial source of profitability to major automotive groups
although the sale of a 51% stake in GMAC by General Motors is a significant development

3.0 REGIONAL OVERVIEW

For more information visit http://www.researchandmarkets.com/research/dda3e4/extended_warrantie