We're Scotlands first and longest established - BuySure Dealer. Basically, we've gone for it full blooded. In round figures, we're around 30-35k'ish a year with RAC. We put a min of 3month warranty on everything. Even stock thats literally just our of Manufacturers Warranty with 9k miles on. We focus on cars under 70k miles (most are under 50k) to allow us to put their 'value' product on. This basically gives the customer (and us!) an amazing level of cover and a claim limit which is the value of the car (today it was a 36.5k Boxster for example).
5 years we've been with them and thoroughly enjoy the head space it gives me where after sales are concerned (the odd one still rears its head), as well as the additional sales I feel it gives, especially with distance customers.
We have over the past year, really been working on selling up, and its working great. We find it easy to sell up something we believe is a good product, and I think customers pick up on that. With that in mind, so far this year, we've turned this from a cost, to a profit generator. You need to be strict with yourself though and 'not just be thankful for the sale'! Ask the customer, present the product and overcome objections!
Taking the RAC up on their products, just for iffy cars, isn't going to work. They aren't stupid and will spot a suspect 'burn rate' a mile off. Work with them, embrace their products and prep standards and it really does work.
Stevie