A study last month by R.L. Polk & Co. reports that cars in
the US average 9 years old. That is nearly 3 times longer
than the manufacturer's auto warranty. When the factory
warranty expires, drivers are then responsible for paying
for inevitable vehicle repairs, which can total into the
thousands of dollars. To protect them from such a financial
impact, consumers are turning to extended auto warranties
for their automobiles.
In the current depressed economic climate, that millions of
Americans are postponing expensive purchases is not news.
But delaying the decision to get a new car is not always the
least expensive choice. Operating a vehicle is still costly.
As more people are keeping their older vehicles, the risk is
higher in confronting an unexpected, costly repair. The
several thousand dollars saved by not using it for a down
payment on a new car now goes into repairing a 9-year old
one.
As the average age of vehicles rises, so does the popularity
of extended auto warranties. With a comprehensive car
warranty, a driver can both have the financial gain of
delaying a new vehicle purchase, and be protected from huge
surprise repair bills.
A study last month by R.L. Polk & Co. reports that cars in
the US average 9 years old. That is nearly 3 times longer
than the manufacturer's auto warranty. When the factory
warranty expires, drivers are then responsible for paying
for inevitable vehicle repairs, which can total into the
thousands of dollars. To protect them from such a financial
impact, consumers are turning to extended auto warranties
for their automobiles.
Brett Hitchcock, President of AA Auto Protection, a leading
broker of auto warranties, says that "People have always
valued the factory car warranty, because it means security
if something goes wrong. What companies in our industry do
is offer people a chance to have that security way after the
factory warranty expires."
The presence of companies selling extended warranties
continues to grow, which is a direct response to consumer
interest in the product. The reputation of the industry,
however, needs work. Said Hitchcock, "Like any other
industry, ours has been stunk up by some bad eggs, but the
regulatory environment is a lot different now than it was
even a year ago. If a company's been around for a while,
chances are it's a safe one."
The Polk study suggests that, economics aside, other factors
that make drivers keep their cars include better
reliability, overall higher price of new vehicles, and the
practice of giving a vehicle to a friend or loved-
one.
For more information visit
www.aaautoprotection.com.
