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Discover the impact of rising automotive repair costs and how Vehicle Service Contracts (VSCs) can shield your finances. Learn more about vehicle protection
Discover the impact of rising automotive repair costs and how Vehicle Service Contracts (VSCs) can shield your finances. Learn more about vehicle protection
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Over the past couple of months, automotive costs have escalated by 20%! This is 6 times more than normal inflation. The rapid increase emphasizes the immense pressure on the automotive industry.
1. Electronics & Sensors
Modern cars have many electronic parts, like ADAS, infotainment systems, and sensors. These parts are not only costly to diagnose, but are costly to fix.
2. Hybrid and electric cars
These need specialized components and labor. Both types of vehicles increase labor costs. This compares to traditional vehicles.
3. Modern car parts are hard to reach
Newer cars often need more work to access parts, even for simple repairs.
Labor shortages, particularly those involving skilled technicians, have affected wages. Cost increases result from technicians requiring further training. Labor costs are also high because of a shortage of skilled technicians.
As supply chains face more and more challenges, these are having a ripple effect in the automotive sector. Shortages and delays of imported components are all factors affecting repair costs.
The general rise in inflation across industries affects automotive services and parts.
The cost of maintaining and repairing a car today presents several challenges. These are having a negative impact on the auto industry.
Consumers are feeling the pinch as they face exponential vehicle repair costs. Because consumers are paying more, they might delay maintenance and repairs. Poor maintenance could lead to more frequent auto repairs.
As parts and labor keep rising, consumers will also need to budget to keep their cars in peak condition. Taking care of your car can be expensive. This affects older vehicles as they will need increased regular maintenance.
Repair facilities and mechanics need to ensure pricing is transparent. This will help maintain customer trust. Now, more than ever, service providers should explain why costs of car repairs are so high. This will ensure customers remain satisfied..
To control costs, service providers need to up their game. This might involve investing in advanced technology. Another way to keep up with the times is to improve workflows and upskilling technicians. Management of parts inventory is also important.
The sharp rise in costs makes it more important for service providers to keep their valuable customers. They can do this with loyalty programs, personalized service offers, and extra services.
Since 2021, servicing your car will cost a whopping 45% more! This enormous increase shows wider inflation trends in the industry. Everything, from labor to components, is more expensive.
An additional 25% imposed by the Trump Administration is putting a further strain on the automotive industry.
Car ownership can be expensive. This will especially affect car owners of older vehicles. This is because they will probably need regular maintenance.
Most new cars have a factory warranty that lasts 3 years/ 36,000 miles. Whichever comes first.
Some factory warranties go one step further. They offer an impressive 5 years/ 60,000 mile Powertrain warranty. (This is how much faith they have in their products).
These warranties offer cover for the transmission, engine, and drive systems. Some factory warranties take even a bigger step forward by offering cover for air bags and seat belts.
Factory guarantees depend on the model, year and brand of vehicle. New owners can transfer factory guarantees. The warranty’s end or the mileage limit terminates the transferability. Selling your vehicle with a factory warranty could prove a powerful selling point.
Find out whether your car is still under guarantee by using the VIN number. Also known as the vehicle identification number. The VIN has the car’s serial number and has all the information about the automobile.
Your VSC provides a buffer from repair expenses when your car breaks down. Your extended warranty provides peace of mind once your manufacturer’s warranty expires.
When purchasing a new or second-hand car, a VSC is available as an add-on. You can buy extended coverage when you get your vehicle. You can buy an extended warranty from a dealership or vehicle manufacturer.
Consumers can also get coverage from a third-party provider after the factory warranty ends. It’s smart to do the math when offered a VSC in a bundle deal with auto loan refinancing. This could prove an expensive option long-term. But is all depends on the plan.
The cost of your coverage will depend on the type of plan you choose. It also depends on the mileage and your vehicle model and make. Expect to pay anything from $500 and $4,000.
Comparing thousands of plans on one platform will give you a fair idea of what you can expect to pay. Get a quote in one step. Pay once and save $526, or you can pay monthly.
Regardless of which plan you pick, or which payment option you choose. Your extended coverage will be helpful. It will protect you from costly breakdowns.
Much confusion surrounds the terms “extended warranties” and “vehicle service contracts”. Find out what type of contract you have to avoid confusion and unpleasant surprises. Your vehicle service contract offers coverage once your factory guarantee has expired.
Unfortunately, some warranty service providers have gained a poor reputation. Not all service providers are unscrupulous. The secret is to find one with excellent reviews and has an exceptional reputation.
If you have an expensive breakdown, you will be happy you have coverage. The best way to find the one that suits you and your budget is by comparing like with like. You can get quotes from hundreds of service providers in one marketplace. You can now get breakdown protection the way it’s supposed to be.
The federal government’s data shows that vehicle repair and maintenance costs went up over 44%/ 45%. This increase happened between February 2019 and February 2025.
Vehicle service contracts are one’s best friend when faced with rising repair costs. Vehicle ownership has never been easier.
Always get to know what your contract covers by reading the fine print. This will avoid any unpleasant surprises.
As tariffs on imports impact the automotive industry, protect what you already have. Your VSC will soften the blow when faced with exorbitant repairs.
Consumers often confuse vehicle service contracts and extended warranties. But did you know they don’t mean the same?
A vehicle service contract covers your vehicle when your manufacturer's warranty expires. Your factory warranty covers any defects once the vehicle leaves the dealership. Most factory warranties, as stated above, expire after 3 years/ 36,000 miles. Whichever comes first.
VSCs cover specific repairs stipulated in the contract. These are not the same as warranties or extended warranties. Manufacturer’s warranties come with your new wheels.
Your vehicle service contract will, like your factory warranty, expire. Service contracts are usually renewable for further cover. Factory warranties, however, are not.
Although there are many advantages of having a VSC, there are some disadvantages.
For consumers who want to keep their vehicles long-term, the increased demand for extended coverage has come into play.
Without an extended warranty plan, your expenses and repairs are all paid out-of-pocket. A vehicle service contract ensures peace of mind because you won’t have to foot the bill for costly repairs.
Vehicle service contracts - are they worth it? Coverage will help you avoid expensive repairs. Find a plan offering extra perks like roadside assistance and towing.
Rising automotive repair costs are here to stay. Both consumers and service providers are learning to adapt to escalating costs. Strong customer relationships are built through transparency and excellent customer service. However you decide to pay - don’t get caught without essential cover.
