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Vehicle repair costs rise 40% in five years
<p><br><strong>Extended warranties prove their value-add for dealer propositions as living expenses soar</strong><br></p><p><br> Reading, 20 March 2023 - Analysis of extended warranty claims paid over five years by Intelligent Motoring, reveals the cost of vehicle repairs has risen by a staggering 40% from 2018 to 2022. The average cost of warranty claims rose 37% between July and December 2022, suggesting that higher prices for repairs are here to stay for the foreseeable future.<br></p><p><br>COVID-19, followed by soaring energy prices and continuing supply chain issues have continued to challenge the automotive sector. However, Intelligent Motoring’s study of over 12,000 warranty claims reveals that rising repair costs began accelerating during the economic uncertainty that followed the UK’s Brexit referendum in June 2016. In the last five years, warranty claims costs increased the most during 2018 to 2019, with the average claim cost rising 19%, while 2020-2021 saw a 10% increase.<br></p><p><br>Duncan McClure Fisher, CEO of Intelligent Motoring, a leading provider of automotive warranties, insurance products and aftersales solutions, said, “Without doubt the majority were unprepared for the knock COVID-19 inflicted on the automotive sector. But the industry had been facing challenges even before the pandemic hit, meaning COVID-19 was simply another element that deepened those difficulties. The resulting financial impact on motorists is significant and has been made worse by wider pressures including rising inflation and the overall increased cost of living. <br></p><p><br>“Motor retailers and motoring services organisations looking to offer financial peace of mind to customers are increasingly recognising the importance of value-add products such as extended warranty and GAP insurance. Motorists who are locked into an extended warranty programme benefit from protecting themselves against parts and service cost increases for the duration of cover, as well as being financially safeguarded from unplanned repairs."<br></p><p> </p>
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