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Used car dealers have been urged to offer warranty packages comparable to those offered by Dacia and other new budget brands, or face losing out on vehicle sales.

The call comes from The Warranty Group who points out the pricing and warranty cover offered by Dacia, Renault's budget brand, is aimed at used car buyers.

Dacia debuts through all Renault dealers in January with the Duster SUV priced from £8,995, followed by the Sandero which will give it a £5,995 entry point. All Dacias will have a standard three year/60,000 miles warranty with the option of five year/60,000 miles and seven year/100,000 miles extended packages for £395 and £850 respectively.

Ian Simpson, sales and marketing director at The Warranty Group, said the Dacia Duster will appeal to buyers who would normally be looking for a used 4X4.

"They may seriously consider a Dacia. For that buyer, the comfort of a three year manufacturer warranty will be very much part of the buying decision and used car retailers may well have to consider matching the budget new car proposition."

Dacia's launch is likely to be followed by an as yet unnamed Volkswagen budget brand, while Chinese brand Great Wall is already targeting used car buyers.

"Budget brands look set to become a feature of the new car market and they will inevitably have a knock-on effect on the used sector during the next few years.

"By nature, these products will attract pragmatic consumers who will treat the warranty as a key part of any buying decision. Matching the level of reassurance that comes with a new car purchase may become important."

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