Extended Service Contract: A Necessity with the Rise in Auto Repair Cost

If you’ve had to get your car repaired lately, you might have noticed something: it’s getting really expensive. Whereas just a few years ago, relatively simple repairs might cost a couple of hundred dollars, today, you could be looking at thousands. While it’s true that everything gets more expensive, inflation alone can’t account for the 3.8% annual increase in automobile maintenance costs. The cost of repairing vehicles has become so onerous that many drivers choose to buy new cars rather than repair their old ones. For consumers who want to save money, however, a more sensible option is to cover their auto with a new vehicle extended service contract. If you sell cars for a living, here’s why your customers could benefit from the extra coverage.

Hi-Tech Autos Need Hi-Tech Repairs

One of the most significant contributors to the rising price of car repair is the complex nature of modern automobiles. Cars come with all kinds of modern conveniences, and consumers can’t get enough of them. With modern infotainment systems, rear and side-view cameras, and automatic braking, mechanics need a broader set of skills and tools than in the past. The result is that both parts and labor have become more expensive, even when the repairs are relatively minor. Consumers love the bells and whistles that are so common in new cars and shouldn’t have to give up these technological advances just because they’re more costly to maintain. By including extended vehicle protection services on their new car, a consumer can get all the fancy gadgets and improved safety features they want without having to worry about the excessive repair costs they can anticipate when the manufacturer’s warranty expires.

The Benefits of a Customized Service Plan

Everyone has different driving habits, and manufacturers have different warranties, so why should an extended service plan be one-size-fits-all? Drivers can suit their own plans to match their needs. Since powertrain warranties are usually longer lasting than the bumper-to-bumper warranty, consumers can purchase vehicle service contracts to make up the difference in the bumper-to-bumper. This will ensure that expensive non-driving related parts (the infotainment system, for example) will be covered along with the rest of the car.

Better Resale Value

Besides saving a ton of money on repairs, there are other positive results that come with extended service contracts. A car that’s covered the entire time it’s been driven is one that’s had all the necessary repairs. It’s an indication that the owner is thoughtful and has taken good care of the car. While companies like Carfax can verify if a car has suffered a major accident or not, only a service contract can prove that a car has had all the repairs it needed when it needed it. Furthermore, they can be sold with the vehicle when it changes hands — an additional selling point consumers can take advantage of when selling their used car.

If you manage or work in a car dealership, your customers will appreciate the extra protection they can only get from an aftermarket service contract. At Freedom Warranty, we have the best vehicle extended service contract for both you and the people who buy your cars. For more information, give us a call today at (877) 249-4186.