The Warranty Group has confirmed it will bring a new generation of Guaranteed Auto Protection (GAP) products to market later this year, following the company’s largest-ever research programme into the sector.
Glyn Davies, Chief Underwriting Officer at The Warranty Group, said, “While we are keeping the finer detail under wraps until the products are ready to come to market, it is fair to say that we now have a much clearer idea of customer needs and expectations. “At the core of these is something fundamental – car buyers view GAP as a genuinely useful product that provides a high degree of protection and they want to be able to access it when they visit a dealer to buy their next car.”
The Warranty Group has been encouraged by its stable sales over the last year, despite some forecasts across the industry that new FCA guidelines would hit sales.
Glyn Davies commented, “There were some doom and gloom forecasts around but I believe that what they failed to take into account was the key finding of our research – car buyers actually want the protection that GAP provides and buying it at your supplying dealer makes eminent sense.
“Where the market is changing, and where our new products will lead the way, is in creating cover for the wider range of finance products that have become more common in the market, as well as creating a wider choice of GAP options to meet customer needs more exactly.
Glyn Davies concluded, “Our view is that, far from being in decline, GAP is one of the major potential growth areas in the warranty sector, and our intention is to aim for market leadership – initially in terms of product and, subsequently, in terms of sales. We are working very closely with our dealers and expect to be able to reveal further details about our plans over the coming months.”