Supply chain shocks caused by the recent COVID-19 pandemic have left their mark on the supply of both new and used vehicles. With less new stock available Dealerships moved momentum to trading used vehicles. Whilst markets readjust to a new dawn without lockdowns, average used vehicles are up 21% year on year and new cars about 5%. No doubt the markets will realign over time.

While higher used car prices can be good news for buyers looking to get the most for their vehicle trade-in, dealerships are scrambling for inventory and coming up empty-handed, making it difficult for those buyers to purchase the car of their dreams.

Used Cars and Vehicle Service Contracts

Until new car inventory returns to normal levels, the demand for used cars is expected to remain high. And, current owners of used cars may find themselves holding on to their vehicles longer than they initially expected they would. 

A consequence of holding a car for several years longer, can mean extra expenses as the inevitable wear and tear begins to happen. Many used car owners may seek options to protect their vehicles - and their wallets - once the original factory warranty has expired to avoid pricey repairs. One option for such protection is the purchase of an extended car warranty or vehicle service contract (VSC).

Are Vehicle Service Contracts Worth it?

Extended Warranties or VSC's can offer peace of mind and help reduce financial stress when a car breaks down. When purchasing a used car from a dealership, buyers are usually offered an extended auto warranty long with various additional coverages like dent and ding repair, tire and wheel repair and  windshield repair. The contract will detail how many years the warranty is for as well as what items are covered and which are excluded.

What Does a VSC Cover?

Each VSC is different, so car owners should thoroughly review their contract before moving forward. The VSC will have a list of inclusions and exclusions and a breakdown of covered repairs. In general, some of the items covered by a VSC include:

• Transmission and engine systems
• Exhaust system
• Steering system
• Heating and air conditioning
• Drive train
• Pumps, alternators and manifold

Most VSC's exclude items such as routine maintenance, tune0ups, brake pads, spark plugs and filters.

For further information  on auto extended warranties and vehicle service contracts including the partners we work with which are Insurers and Administrators including the territories we work in please contact Mark Standen, Mocden Insurance Services on:

+1 315 359 6005

+44 (0)1322 476 276

+61 3 638 77 044

Mob: +44 (0)1322 476 276

Mob: +61 (0)490 056 472

Email: mstanden@mocden.co.uk

www.mocden.co.uk