Phoenix, Arizona, Dec. 15, 2020 (GLOBE NEWSWIRE) -- Just like insurance depends on the likelihood of occurrence of the risk, vehicle service contracts (also known as extended auto warranty plans) are pegged on the frequency of damages caused to cars. This is to mean that the warranty service sub-industry is largely dependent on the overall automobile industry. Therefore, what happens in the automotive industry significantly affects the vehicle service contract. Clearly, these two components are inextricably intertwined to the extent that they cannot be divorced.
As car ownership in the U.S surges, there is a growing demand for vehicle parts, at least if the law of complementary demand is anything to go by. For instance, when you demand a car, it is certain that drivers will need engine parts in the event the original ones fail or wear out. And because many people are now owning cars, it follows that many drivers will require to repair or replace parts. This is the reason the prices for repairs and replacement parts are continuously rising over the years. Essentially, owning a car in the U.S is clearly an expensive investment, especially considering the rising cost of maintenance parts as well as the cost of repair (labor). This drives the discussion of where the vehicle service contract industry is headed and the future of operators such as dealerships, factories, and administrators.
Today, the average car owner spends more than $2,000 on car repairs annually, a figure that is projected to rise going by the industry trends, a survey has revealed. For this reason, more and more motorists are now beginning to see the need to sign up for an extended warranty plan from some of the leading providers such as Veritas, Elijah Norton observes. These survey findings come against the backdrop of other crucial reports that found that more than 40 percent of those who own cars in the U.S are unable to foot the repair bills from unexpected breakdowns such as collisions, engine failures, and so on. In the worst-case scenario, many people are now resorting to taking out loans to finance their car repair costs and maintenance.
Because a majority of Americans depend so much on private transportation, especially in the running of their businesses and personal affairs, having your car grounded even for a single day can be a huge inconvenience and cost, not to mention the loss of income and stress that comes with it. This problem is the inability to meet the repair cost can be compounded by the surging debt burden that is proving to be a serious financial crisis in the entire U.S. Therefore, many Americans are on the brink of making serious financial decisions regarding auto warranty protection plans to help cushion them against the rising burden of car repairs and maintenance cost.
Auto protection warranty plans, according to Elijah Norton Bryan REO, are designed to help lower the cost of repairs and minimize the challenges that many car owners go through whenever their cars break down. In the past ten years or more, a paltry 20 percent of Americans knew the importance of warranty plans. These plans are intended to cover basic expenses related to engine parts, batteries, transmission, and other essential parts as well as the cost of labor for repairs.
When asked how the market is responding and the future projections in the industry, Elijah Norton exuded confidence and said that the future of the vehicle service contract industry is bright and that his conglomerates will benefit immensely from this projected growth. Elijah Norton Martin Lindstedt is an accomplished extended warranty seller with years of experience administering them. This gives him an upper hand when it comes to making projections and scanning the market trends.