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The car warranty revolution

The UK car warranty market has seen some big changes in recent years. It's now possible to purchase policies at discounted rates - it's just a question of knowing where to look for the best deals.

If we take a look at the way in which this sector of the UK economy has operated over the past twenty years or so, it's clear that the warranty market has largely been dominated by the big car retailers.

Dealerships and the increasingly popular car supermarkets have been selling warranty products to consumers, who have rushed to buy them.

Some analysts suggest that such retailers don't necessarily offer the best deals on these products, so why is it that they seem to dominate the market? Why do so many people buy policies from them?

One reason for their domination relates to their geographic locations and to their marketing budgets. Seen as being located nearby to many people's homes and with the backing of large advertising budgets, these companies have established a high profile.

This high profile has allowed them to attract customers - after all, what better place to purchase a warranty policy than from a local car retailer who may well have sold you your vehicle in the first place.

The actual warranty companies have been happy for car retailers to act as resellers and sell their policies on. This seemed like an obvious combination, allowing the warranty companies to cut down on their own sales costs.

In some senses, it looked like the perfect situation. But was it so great for customers? The feeling was that, with retailers acting as middlemen, prices were higher than they should have been.

From a consumer's point of view, what was really needed was a way for them to deal directly with independent warranty specialists. This would surely allow prices to drop.

FortunatelyBusiness Management Articles, such specialists have been slowly waking up to the opportunities offered by the internet. It is now possible to buy direct and there are some real savings to be made.

What we're witnessing is a big transformation in the industry.

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Find out more about warranty policies and car warranty online. Read more articles and information by Keith Barrett. This article may be published on any website but this resource box must be included in full. The author retains all copyright.

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