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Auto Warranty Cost Are On the Rise

warc.jpgRecently 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.

Posted on Sunday, February 3rd, 2008 at 12:27 pm In Auto Warranty  

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