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