Extended vehicle service contracts are lucrative for auto dealers. They can often be a harder sell for customers, however, who initially see them only in the form of a higher car payment. But a new survey by RoadStar Services has found that nearly 64 percent of respondents would either consider purchasing an extended vehicle contract (57 percent) or already own one (seven percent).
So what is it about extended service contracts that attracts buyers? By and large, it’s roadside assistance that makes buyers take a second look: nearly half of all respondents ranked it as the number one factor in purchasing an extended vehicle contract.
Knowing what is valued by our customers allows us to focus on providing the right service at a realistic and reasonable price point,” said Anders Steele, VP of Communications for RoadStar Services. “Additionally, we were interested to see that over half of car owners would consider purchasing an extended service contract.”
Consumer groups aren’t always keen on recommending extended service warranties, noting that customers often pay thousands for them but get only a few hundred back, on average. One advantage to getting your money back is to seek a warranty that is transferrable with the car, which can raise resale value.
“From a pure numbers standpoint, the smart money is on skipping the protection and instead focusing on buying a model with better-than-average predicted reliability and then properly maintaining it,” wrote Consumer Reports.
What’s clear from the RoadStar Services survey is that consumers want options when it comes to extended vehicle service contracts. Respondents indicated their desire for additional discounts and benefits on related services bundled with vehicle service contracts, with 93 percent being more likely to purchase with additional options included. Contracts vary from automaker to automaker, and it’s worth it for buyers to shop around and closely compare benefits and costs.
RoadStar emphasizes that its online service contract calculator shows the exact price of the extended coverage, along with coverage details based on VIN and mileage of any vehicle. The options for longer contracts and add-on coverages are clearly marked and competitively priced.