Auto Warranty News

Auto warranty claims in the automotive sector for new car warranties are up by less than 1% in the first three quarters of 2007.  When we compare this with the first three quarters of 2006 this is very good news.  In new car warranty claims it is a very small change.  Automobile manufacturers are very pleased about this trend. 

For all of the auto warranty providers who also manufacture new vehicles, thereby providing new car warranties, this industry sector is definitely in the black.  Hopefully this financial trend that seemed to begin in 2006 will continue in the future.  Auto warranty costs as a whole have been somewhat flat since back in 2004.

Recently market indicators began to make it look like automobile manufacturers auto warranty costs were on the rise.  As it turns out, it seemed to be a simple market adjustment as the costs to warranty their new vehicles has begun to stabilize.  Manufacturers and their supplier’s costs have remained consistent with just a small gap between the two.  The great news is that what auto warranty expenses are no longer skyrocketing which makes US automobile manufacturers feel fairly confident they will continue to even out.

Since September 2007, another quarter has gone by and about $4 billion has been spent processing auto warranty claims.  The auto warranty industry awaits the manufacturer’s filings of their annual spending reports which will probably be available sometime in March.  It will be interesting to see how the trend has continued in the past two fiscal quarters.

In most years the fourth quarter is one of the most expensive for automotive warranty providers in the United States.  We’ll have to wait and see, but it is possible that the fourth quarter of 2007 could have been the most expensive ever.

There’s no arguing that 2008 is a very important year for the automotive industry.  Consistent recalls, the fuel crisis, and many public-relations situations have automobile manufactures struggling to keep their customers loyal.  It will be interesting to watch during the year to see what makes and models can avoid a continuous downward slide of sales.

The auto warranty world will probably benefit from the manufacturers will as consumers will be far more concerned about adding new car warranties to their vehicles.  The auto warranty business has been on the incline for almost a decade now as a good extended warranty has become one of the most important purchases someone can make with their vehicle.

Feeling the effects of 2008’s potential lackluster automobile performance, vehicle manufacturers automobile warranty divisions may play a pivotal role in enticing customers to make a purchase.  Manufacturer’s warranties will now become an all-important incentive for new and used car buyers.  Customers simply will not be able to avoid considering what warranty coverage a particular company offers.  Many auto warranty providers are now making adjustments to fit in better with this new marketplace.

The worldwide competition frenzy between the United States’ automobile manufacturers and many Asian automotive manufacturers rages on.  Especially now, with the recent concerns over vehicle fuel efficiency ratings and global gas prices.  Statistics now show a growing competition between carmakers here in the US and abroad as industry commonsense has everybody attempting to make more economical vehicles.  The priorities of the past, such as size and luxury are no longer the status symbols they once were.  Gasoline costs are now a major factor in auto sales.  The gasoline guzzlers of the past are now being frowned upon.

Some of the new technologies create new concerns about the reliability of some of the new vehicles being built.  An extended auto warranty is perhaps more necessary now than ever.  Feeling this thing of excess or repair bills when no aftermarket auto warranty is in place is something consumers just don’t want to deal with.

The numbers speak for themselves.  Many Americans are being forced to be much more sensible about their vehicle purchase choices.  Currently, Asia still provides a more practical model line for the current global climate.  US automobile makers are attempting to hang in there but are currently just not cutting it.

What would the automotive world be like if General Motors and Ford merged to become one single giant company?  The idea of this potential alliance is very exciting.  Two of the major international automobile players would make industry news and turn the automotive market completely upside down.  If General Motors and Ford put their two very experienced and monumentally influential companies together it would be quite a risky business move.  A general business concern would be what exactly it would do to the auto industry.

The industry would certainly feel the effect of the two automotive giants’ merger, but if it failed both companies would suffer globally.  Many large companies in similar industries have merged successfully but this would be one of the largest mergers in history.  Both companies have a solid reputation and broad product base but may end up competing only with themselves.  Reports of a possible merger General Motors and Ford are stirring up quite a bit of interest in the automotive world.  Just the effects on the auto warranty industry would be enormous.  I certainly am not holding my breath.

A South Carolina man whose vehicle was still under warranty said he was an able to get repairs done in a timely manner.

Since the middle of last year this consumer has been trying to get his van repaired but has not been able to get complete satisfaction.  The car has been into the shop numerous times and after several months of trying promises were made that were not kept by the dealer. 

He contacted the auto warranty company that provided him with his coverage and asked them to assist in getting the dealer to complete the repairs.  Many used car warranties offered by some providers would not have gotten involved.  Auto Advantage Inc. was not one of them.  They immediately contacted the dealer and persuaded them to complete repairs in just 48 hours.  Needless to say the customer only has kind words for the representative and company that assisted him.  The customer adds, “I just believe that if you buy an auto warranty the people that sell it to you should stand behind it”.

Used car warranties can be quite a value when purchased on any used vehicle in your family.  In addition they will also increase the value of your vehicle as they are transferable when the vehicle is sold to the next owner.

Purchasing a new vehicle can be very difficult decision.  Even the highest rated makes and models, occasionally disappointed a buyer.  Some of the most highly rated auto manufacturers simply cannot avoid an occasional manufacturer recall or production error.  Carefully consider the car’s reliability record by researching the vehicle’s customer satisfaction history.  It is rare that you can anticipate the precise reliability of an automobile, but doing some research on its history will give you the telltale signs of what to expect.  Internet sites like Edmunds and Kelley Blue Book accurately rate new and used vehicles and give you a good idea of what to expect.  This can also help you decide whether you should be considering new car warranties along with the vehicle purchase.  Even when they vehicle is very highly rated and has an excellent repair history a new car warranty is an excellent investment.

Buying new car warranties when purchasing a car or truck from a dealer protects the buyer from unforeseen repairs.  Most auto manufacturers offer extended auto warranties backed by the company though the pricing is usually quite high.  A much better deal can usually be found on and auto warranty by searching the Internet.  New vehicles are one of the largest investments a citizen can make and should always be protected by the right coverage.

Whether it be from a manufacturer or aftermarket auto warranty provider, don’t be caught in the lurch when your car breaks down and tries to eat away at your savings account.

A new car franchised dealer located in the southern United States has been found to be selling fraudulent extended auto warranties to its customers.  These accusations have been made by several customers when they attempted to use their auto warranty coverage, only to find out it was not valid for the repairs it described in their contract.  It turned out that there were many backdoor outs the dealership had given itself when preparing the contract forms.  These customers complained that the dealership would not on the coverage as written, leaving the consumers with repair bills they believed were covered.  It was later learned that several other customers that actually did get claims paid for work done at a variety of repair shops complained of a lengthy and difficult claims process.

Stories like these are precisely why any auto warranty offered by a dealer, or even an aftermarket auto warranty should provide clear terms and conditions understandable by a consumer.  You should not need a lawyer to interpret what is considered a covered breakdown and what is not.  Consumers should also be wary of any contract that does not clearly describe itself in the layman’s terms.

A quality extended auto warranty can save you hundreds or even thousands of dollars, but only if it is written in a way that allows it to be recognized by repair shops and dealerships nationwide.  It should also only be purchased from a company that has a solid reputation and is a member of the Better Business Bureau.  An investment in an extended auto warranty from an upstanding company should always mean that there will never be a question about whether your coverage is valid when it is needed.

The automotive industry has seen the largest drop in used car sales in almost a decade.  Industry monitors report that in the third quarter of 2007 alone sales dropped by over 3 percent.  Sales of later model cars that are three years old or less have dropped off the most, losing almost 10 percent of their sales.

Some new car programs are partially to blame for the used-car sales drop off.  Increase in some of the coverage offered by new car warranties, special insurance incentives, and finance deals as low as zero percent have buyers looking at new vehicles as opposed to late-model pre-owned cars.  Over the long haul this will probably cause used-car prices to drop off considerably.

This change has surprised the industry as the third and fourth quarter of the year usually see a slight increase in the seller used vehicles.  The outlook is that conditions will probably continue to be tough for dealers who sell used vehicles, especially with the economy in its current condition.  The auto industry, during a recession, usually takes one of the biggest hits in the financial world.

One industry that will probably benefit from the current market conditions will be the auto warranty industry.  Used car warranties will continue to be a necessity for most vehicles on the road.  As consumers will tend to keep their vehicles longer, used car warranties will protect them from having to break the bank for the repairs on these older vehicles.  At least the auto warranty industry will see some benefit from the current economic conditions.

Contrary to huge investments in technology to reduce auto warranty costs and improve quality, auto warranty cost reduction has been quite elusive for many vehicle manufacturers.

One of the problems is that specific identification of the troublesome parts and less than desirable suppliers is a difficult and time consuming costly process. Automobile production, sales, and new car warranties create valuable data that could identify defective parts.  This data can not be fully used because it is too big to be cost effectively looked at by any data warehouse technology. The systems are made more complicated by constraints that make it difficult to cost effectively perform the analyses on data sets with speed and accuracy.