Trustmark Warranty Reveals National Market Indicators for Vehicle Repair Warranty Industry
Industry Data Showcases Makes, Models and Years of Most Covered Vehicles
Napa, CA (PRUnderground) June 16th, 2017
Trustmark Warranty released findings from its national customer database today, revealing notable trending market indicators, announced Luis Nieves, CEO of Trustmark Warranty. The findings bring to light an emerging customer demographic and the types of vehicles for which Americans seek warranty coverage beyond the standard manufacturer’s warranty.
According to Luis Nieves, CEO of Trustmark Warranty, “Through our direct-to-consumer sales model, Trustmark Warranty now has clients in 34 states and is experiencing exponential growth in selling auto repair protection plans via our online sales portal. In doing so, some defining demographic data on those vehicle owners who are smart about planning in advance, as well as what makes, models and age of vehicles they drive and where they are located. Information worthy of sharing not only with those involved in the auto industry, but also to the general consumer and financial planners.”Some of the national market statistics as evidenced by Trustmark Warranty’s client base includes:Manufacturers:
• Domestic manufacturers make up 40% of all warranty sales, with Ford in first place and Chevrolet coming in a close second.
• Japanese manufacturers comprised 31% of sales, with Nissan in first and Toyota a near second.
• Ford Trucks, namely the F-150, comprised the highest number of sales.
• Ford’s Expedition and Explorer tied for the second spot, with GMC’s Acadia coming in third.
Top Vehicle Years:
• 2008 Model Year took the top spot, with 2011 and 2006 taking second and third.
• 24.6% of vehicles had less than 75,000 miles at the time of warranty purchase.
• 48.7% of vehicles had less than 100,000 miles
• 14.0% of vehicles had between 150,000 and 200,000 miles
• Texas provided the most customers of any state.
• 37.6% of customers were in Southern States including Texas, Georgia, Alabama, Virginia and Louisiana.
• 25.2% were in Western States including California, Oregon, Washington and Colorado.
• 19.4% of customers were in Midwest States including Ohio, Missouri and Michigan.
• 17.8% of customers were in East Coast States including Pennsylvania, Virginia, New York and New Jersey.
According to Nieves, “This demographic information is valuable to all in the auto industry and we’re utilizing this information to continually improve our product offering and further refine the options available.” As a case in point, Trustmark previously sold policies with terms of 12, 24, and 36 months. After analyzing consumer data from the previous year, management saw a majority of consumers opting for the 36-month term. Shortly thereafter, Trustmark began offering a 48-month term, and after only 10 months on the market, it has already become the company’s preferred policy, with 53% of total Trustmark Warranty sales.
Mr. Nieves has always asserted that vehicle owners increasingly want repair protection because they are holding onto their cars longer. These sales numbers bear that out. Further, this assertion was recently affirmed in the Wall Street Journal, which noted the average car and light truck ownership period has increased to an average of 11.6 years, far beyond even the best original manufacturer warranty.
“Owning a car today requires more than just a car payment and insurance. With all of the electronics and technology built into vehicles, it’s becoming increasingly important to have a policy in place to warranty unexpected and costly repairs. And most of us, if we’re honest about it, don’t budget in advance for possible auto repairs. Then, when they do happen, repairs either have to be charged to a credit card, or something else in the monthly budget is stretched or sacrificed. Trustmark Warranty was designed to be a low cost option to fill that gap.”
In addition to heading up Trustmark Warranty, Luis Nieves is also a nationally recognized personality and automotive expert known as The Consumer Auto Advocate. His blog features extensive automotive maintenance, purchase, recall, repair, and safety tips and links at www.TheConsumerAutoAdvocate.com
About Trustmark Warranty
Trustmark Warranty is a tech-based, direct-to-consumer provider of Vehicle Service Contracts for private owners of used cars. Trustmark Warranty maintains an A+ rating by the Better Business Bureau and their vehicle service contracts are available in 12 to 48-month terms. Trustmark Vehicle Service Contracts provide industry-leading coverage and are guaranteed by an A-rated insurance company with $32 billion in assets. The Administrator has been in business for more than 25 years and has paid out more than $650 million in claims. For more information, visit www.trustmarkwarranty.com.