Report Shows That Vehicle Service Contracts Are More Important Than Ever

By: Global Administrator

September 16, 2013

According to a recent report by R.L. Polk & Co., the average age of passenger cars and light trucks on the road right now stands at a record high of 11.4 years. This makes ownership of a vehicle service contract even more important as repair costs rise with older vehicles.

“Service contracts provide peace of mind for owners who keep their cars longer,” said Timothy Meenan, Service Contract Industry Council (SCIC) executive director. “Expensive breakdowns always seem to happen right after a car loses its manufacturer’s warranty protection, so extended service contracts can provide more years of worry-free driving.”

Data from Polk, which keeps track of registration data from the nation’s state motor vehicle departments, shows that the number of older vehicles on the road has increased over the years. In 2002, the average age of the U.S. car and light-truck fleet was 9.6 and the steady upward trend is expected to continue.

Average Age of Passenger Cars and Light Trucks


Year

Passenger Cars

Light Trucks

Total Light Vehicles

2002

9.8

9.4

9.6

2003

9.9

9.5

9.7

2004

10.0

9.5

9.8

2005

10.1

9.5

9.8

2006

10.2

9.5

9.9

2007

10.3

9.6

10.0

2008

10.4

9.8

10.1

2009

10.5

10.1

10.3

2010

10.8

10.5

10.6

2011

11.1

10.8

10.9

2012

11.3

11.1

11.2

2013

11.4

11.3

11.4

“Most of us want to do everything we can to hang onto our cars as long as possible, but the rising cost of repairs makes this increasingly difficult,” said Meenan. “The upkeep of an older car can get expensive quickly, but extended coverage through a service contract helps keep a car running longer without so many pricey repair bills.”

Visit warrantech.com to learn more about the various vehicle service contracts that are available to you.

Filed Under: contracts, service, Vehicle

Extended Service Plans: More Value, Less Uncertainty

By: Global Administrator

July 30, 2013

Everyone understands the importance of savings. We’ve been taught from an early age that the sooner you start saving, the better off you’ll be later down the road. Setting aside funds can increase your purchasing power when buying a home, prepare you for retirement at an earlier age and cover your expenses should you need emergency funds — all smart investments toward getting ahead and staying ahead.

However, a recent nationwide survey by Hart Research Associates shows that 48 percent of Americans say that they do not have the savings they need to achieve financial stability. In today’s economy, it is especially challenging to set aside rainy day funds for those unexpected moments that can drain your bank account and set you back even further. That is why it is in your best interest to consider an extended service plan (ESP).

Designed to help customers manage the cost and inconveniences of product failures, an ESP can be purchased for just a fraction of what you would normally pay for service repair. In some cases, the savings can add up to hundreds of dollars and even mean the difference between paying just a little extra cash as opposed to purchasing an entirely new product. Plus, there are several other advantages to consider with an ESP.

  • Today’s plans and service programs are more affordable than ever before
  • You’ll have added peace of mind knowing that your purchases will be fixed or replaced if something goes wrong
  • If you are having trouble with a product, you’ll have immediate access to a qualified service professional who can diagnose the problem, saving you time and money
  • A Warrantech ESP can readily be customized to fit your wants and needs

Above all, an ESP can protect you from incurring deeper debt and help save you money in the long run. This in turn can free up your finances so that you are able to accumulate greater wealth and maintain a respectable savings. And as most financial-savvy individuals view their major purchases as an investment worth protecting, an extended service plan should be considered a smart addition to your savings account.

Filed Under: Extended, plans, service, Warrantech

Market Trends to Consider in 2013

By: Global Administrator

July 01, 2013

Consumer spending accounts for 70 percent of the U.S. economy. So it is understandable to think that in a sluggish market retail sales would be trending downward. However, despite actual product sales declining in 2012, more customers purchased extended service plans (ESPs) last year than in 2011.

A large reason for this trend is due to the fact that with tighter budgets, consumers are forced to make smarter decisions with their money. That means that instead of going on frivolous, spur-of-the-moment shopping sprees, purchases are now more carefully researched, thought out and viewed as long-term investments.

With this in mind, retailers were more focused on their ESP programs and receptive to initiatives that improved awareness, incorporated loyalty programs and improved website research and shopping capabilities for their customers. The result of these strategic endeavors helped play a big part in shaping the following industry trends:

  • The top products on which ESPs were sold included appliances, televisions, computing devices, audio/visual equipment and mobile devices
  • Attachment rates were up, particularly on big ticket items
  • Sales of ESPs on new tablets, ultrabooks and notebooks have observed strong growth and outpace the attachment rates of other products
  • Mobile phone ESPs have also observed significant growth, particularly for programs offering monthly payment options that provide for an effective competitive model relative to carriers
  • Furniture programs continue to gain volume as well

In addition to the aforementioned, Warrantech ESP offerings specifically had greater success thanks to a renewed focus on simplified terms and conditions. This made them more accessible/understandable for customers, compatible with OEM warranties and more comprehensive in coverage. Additional customer support was also viewed as a prominent factor in ESP growth as was product bundling, which allowed customers to customize and add multiple products under a single plan for even greater value.

During the next six months, we anticipate even more innovations in plans, stronger customer support solutions, and growth in ESP sales as 2013 is expected to be a much better year overall financially. Also, look for increased consumer confidence, coupled with stronger retail partnerships that focus on ESPs. Warrantech stands ready to deliver with our own dynamic ESP platform, which will collectively yield improved value for customers and more brand loyalty for our retail partners.

Filed Under: Extended, plans, service, Warrantech

About Us

By: Global Administrator

March 18, 2013

Founded in 1983, Warrantech has established itself as a well-respected industry leader through product innovation and an unparalleled dedication to service. All of our extended service plans and programs are designed to help customers manage the cost and inconvenience of product failures; thereby reducing customer dissatisfaction and increasing customer loyalty. Whether you are looking for a customized plan or a turnkey approach, we have a program that will work specifically for you.

We believe that the key to mutually rewarding, long-term partner relationships is transparency and flexibility. Our partners are provided unparalleled access to performance data for their programs. With this knowledge, partners are empowered to make better decisions regarding their programs. Additionally, programs are flexible based on the needs of our partners; thereby allowing us to adjust the programs throughout a partner’s stages of development — ensuring a perfect fit.

With this in mind, we created this blog as an extension of our transparent business model. It is intended to provide you with important news, information about Warrantech and further insight into industry trends that could affect you. We hope that you will use it to your advantage and encourage you to interact with us frequently so that we can better understand your needs and exceed your expectations.

Also, be sure to check in with us on Facebook, Twitter and LinkedIn for the very latest information. If you have a specific question or suggestion, feel free to contact us via email at info@warrantech.com or by phone at 800-833-8801. We look forward to continuing our ongoing dialogue and providing you with the best service possible.

Sincerely,
Sean Stapleton
President & CEO, Warrantech

Filed Under:

NIADA Names CPO Program Administrator

By: Jeff Hatch

April 09, 2012

By Auto Remarketing Staff
 
ARLINGTON, Texas - The National Independent Automobile Dealers Association announced last week that it has chosen an administrator for its all-new NIADA Certified Pre-Owned Vehicle Program.
 
Tapped for the role was  Warrantech, an The Amynta Group company.
 
Warrantech, a provider of extended service contracts for the automotive industry will “administer the plan, handle and address all post-sale customer needs, customize dealer and consumer marketing materials and work closely with NIADA’s state affiliate network to launch the program nationwide in May 2012,” the organization explained.
 
“Warrantech is honored to have been selected by the 66-year-old NIADA as their CPO Program Administrator. We applaud the time honored tradition of excellence that NIADA member dealers observe, including their adherence to a strict code of ethics,” said Sean Stapleton, chief executive officer of Warrantech. “We feel this commitment mirrors Warrantech’s dedication to excellence and drive to provide superior products and continued quality customer service.”
 
Explaining the reasoning behind the partnership, officials noted it allows for “a perfect mix of NIADA dealers committed to superior quality and service and an industry leading service contract company that can give them the products & support their customers are looking for.”
 
Commenting on the news, NIADA chief executive officer Mike Linn said, “Our research is telling us that 65 percent of consumers begin their vehicle search looking for a certified pre-owned vehicle and that number is growing.
 
“NIADA is committed to helping our members give customers what they are looking for and offer a top-notch buying experience for car buyers in their communities. We see the NIADA CPO Vehicle Program as a primary way for NIADA members to further separate themselves from their competitors and give customers a better vehicle with additional peace of mind after the sale,” he continued.
 
Steve Jordan, NIADA chief operating officer chimed in, noting: “In re-tooling the NIADA CPO Program, we recognized independent dealer business models vary widely and that we had to offer additional CPO options to specifically meet the operational demands of our dealers.
 
“Warrantech’s successful track record with independent auto dealers, varying product offerings, world-class claims operation, nationwide sales footprint and long term commitment to support the success of our dealer members made the partnership decision easy to make,” he added.
 
Highlighting the specifics of the program, offiicals contend that with three plans under the NIADA CPO Program, dealers will be able to select the option that is right for their market and their customer base.
 
These options include:
 
1.    Three-month/3,000 miles limited warranty — Includes 36 months/36,000 miles engine and AC component coverage
2.   Six-month/6,000 miles limited warranty — Includes 36 months/36,000 miles engine and AC component coverage
3.    12-month/12,000 miles limited warranty
 
These NIADA CPO limited warranty options will include coverage of: engine, air conditioner, turbo or supercharger, automatic and manual transmission, transfer case, drive axle, steering components, select electrical components and seals and gaskets, officials explained. 
 
Furthermore, the NIADA CPO limited warranty options can be supplemented by adding the NIADA Total Care or the NIADA Total Care Plus coverage that includes: front and rear suspension, brakes, fuel system, cooling system and additional electrical components.
 
“In addition to this important coverage, NIADA and Warrantech will provide dealers with comprehensive sales training on how to utilize the CPO program to sell more vehicles and extended service contracts, as well as marketing support which will include in-store signage and promotional materials,” officials explained.
 
Warrantech senior vice president Mike Burgholzer had this to say about the new partnership and program:  “By providing both administration and underwriting, the all-new NIADA CPO Program will help dealers become more profitable and grow their businesses by providing significant incremental revenue through the sale of additional vehicles and extended service contracts.
 
“Additionally, this new plan will help dealers continue to build customer loyalty by insuring the ongoing reliability of their purchases. It’s a win-win for both the dealer and the consumer,” he concluded. 

This article originally appeared in the April 2012 edition of Auto Remarketing magazine and can be found online at: http://www.autoremarketing.com/retail/niada-names-cpo-program-administrator

Filed Under: Auto, certified, CPO, NIADA, pre-owned, Remarketing, Warrantech

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