Having a vehicle service contract (VSC) gives you
added peace of mind while taking away the risk of an expensive and unexpected
repair bill. But as vehicle design starts to evolve even further, the appeal of
a VSC continues to change as well.
More dealerships are finding that consumers are less
worried about mechanical failure and are more focused on in-vehicle technology.
That’s not to say that there’s not a need for component coverage on items such
as the transmission and engine — far from it. It’s just that as cars are being
built with more electronics and connectivity features, items like navigation
systems and Bluetooth technology are becoming more of a focus for customers
interested in a VSC.
In a 2014 study by the Consumer Electronics
Association (CEA), in-vehicle technology was cited as an important factor when
purchasing a new vehicle for more than half (59 percent) of U.S. drivers. The
same study also found that two in five consumers (42 percent) stated that they
intended to buy an in-vehicle technology device or accessory within a year.
Fast forwarding to the present day, another study
was just released that helps provide even further insight into VSC/automotive
purchasing habits. According to a recent DealerRater survey question supplied
by Automotive News, 30 percent of consumers said that they bought a service
contract on their most recent vehicle purchase. Taking a deeper dive, here are
some additional findings from the survey:
• 26 percent of new-vehicle buyers purchased service
contracts
• 40 percent of used-vehicle buyers purchased
service contracts
• 33 percent of consumers who visited a dealership
for service bought a service contract
• 21 percent of all respondents purchased GAP
protection, which was the next best-selling F&I product
• 12 percent or less of all respondents purchased
F&I products such as tire and wheel, prepaid maintenance, paint protection
and coverage for alarm systems
Advanced features and safety systems cost more to
replace if they malfunction, so a VSC makes good sense if your vehicle features
the latest state-of-the-art technology. And even if it doesn’t, a service
contract is still a great option for covering the major components of your
vehicle. Plus, a VSC gives your vehicle greater resale value. If you plan on
selling your car or truck after a few years, keep in mind that you can get a
higher price for it if it’s backed by a VSC.
So, yes, car design has evolved and will continue to
do so. But on the flipside, so have VSCs. Service plans have become more
flexible, which allows every consumer to find the perfect fit for their budget
and the way they drive. And this key advantage in how VSCs are designed allows
consumers to stay out of the red and on the road a lot longer.
Article Source: –
https://warrantech.com/blog/february-2016/vehicle-service-contracts-remain-a-popular-choice/
