The Automotive Aftermarket and Your Vehicle
Many Americans have never heard the term aftermarket; with respect to the automotive or any other industry. Simply put, aftermarket is the repair, replacement, or additional purchases for a product after it is originally sold to a customer. The automotive aftermarket, according to the Automotive Aftermarket Industry Association (AAIA) is "the industry which maintains, repairs and accessorizes vehicles after they are sold to their owners". In the United States alone, the motor vehicle aftermarket is a $255.2 billion business. Not surprisingly, vehicle service repair comprises two-thirds of the automotive aftermarket. Last year, the cost of motor oil and other automotive chemicals rose by 6.8 percent. The AAIA also reports that the average hourly wage for those employed in the aftermarket industry also rose as much as 5.1 percent.
What does this mean for the consumer? It means that consumers will pay more money in the coming years to maintain and repair their vehicles. This fact is disturbing because consumers can't "plan" for vehicle repair costs. No one anticipates a leaking radiator, a failing air conditioning system, or a grinding transmission. Consumers can, however, anticipate the possibility of auto repair by purchasing extended service vehicle service agreements on their vehicles so that the rising costs of these repairs will not decimate savings accounts, absorb credit accounts, and destroy vacation plans.
An extended service vehicle service agreement is an insurance plan that will provide automobile protection beyond the limits of a manufacturer's vehicle service agreement. Extended service vehicle service agreements are important because they pay for the costly repairs that are usually required when a vehicle is older and is no longer under the original manufacturer's vehicle service agreement. They also offer a fixed cost for all repairs to a vehicle - the deductible. As example, a transmission replacement, common in Northern and Mountain areas or air conditioning unit replacements common in all Southern climates cost only the deductible amount, $100 or Zero; while the actual cost of these all too common repairs range between $800 and $2,500 based on todays market. As aftermarket costs continue to rise, an extended service vehicle service agreement has become one of the better investments an automobile owner can make.