Consumers and marketers often mistakenly perceive Vehicle Service Contracts (VSC) negatively, believing that extended Vehicle Service Contracts increase revenue and profits while providing little advantage to the consumer. But recent research seems to dispute this perception, instead showing that consumers who obtain service contracts have increased loyalty to a brand and the retailer.

Vehicle Service Contract buyers also report being happier with their investment than those who forgo Vehicle Service Contracts. Like all insurance, VSCs provide peace of mind, especially with 30% of used car buyers who purchased a contract reporting a claim within the first year of ownership. Reported use of the VSCs by drivers who owned their vehicles for two to five years shot up to nearly two-thirds of all those who had purchased one.

Extended Service Contracts and insurance in general have received an undeserved bad rep as being difficult to deal with and unwilling to pay claims. In reality, statistics show that 84% of used car buyers who submitted a claim with their VSC provider reported all of their claims settled, and 82% said they would be interested in buying an extended Vehicle Service Contract again.

Like many valuable products and services, education is necessary to demonstrate the benefits and value of VSCs to consumers successfully. Familiarity often drives clients to buy products that they have had good experiences with. Research supports the fact that most VSC customers have had good experiences, and are loyal to the brand that they choose as well as the vendor.

To talk more about Vehicle Service Contracts, or anything else, please Contact Us.