Rising Costs

There’s no avoiding it… Most mechanics in the U.S. are paid a form of “commission” on the overall price tag of the repairs. In other words, the more they find “wrong” the higher their paycheck!  Here’s a closer look at some industry facts you should be aware of when it comes to deciding on the type of extended  coverage you need:

- In the U.S. there has been a documented 125% increase in revenue streams being driven through the Service Department of new and used car dealers (Repair shop)

-  The AAIA reports that consumers pay upwards of 11.7 billion dealers more than they should annually due to rising costs at auto dealerships. An estimated 34.3% higher price tag to independent shops

- The #1 cause of consumer credit car debt is auto repairs

- Labor rates have risen 60% in the last 5 years alone, and continue to rise

- Many repair shops now charge $100 or more per hour for labor and are expected to top $150 per hour

Some of those bullet points are kind of scary aren’t they? The fact of the matter is that owning a car can be quite costly. Sure, cars have increased their engine reliability for the most part since say, the 1980’s, but there’s something else going on here that counter-acts the engine reliability increase over the past few decades…

Complexity.  Cars of today are kind of like desktop computers on wheels. (With a more comfy seat) Your average car on the road these days has features built into them that cars of the 80’s could only dream of. Most vehicles, including economy cars, have “brains” that can perform millions and even tens of millions of calculations per second.

This complexity comes at a price – More stuff to break down, and more difficult to fix! This is why costs continue to rise, even though vehicles of today have engines that are more reliable than in the past. Makes sense doesn’t it? That’s what U.S. Auto Protection is all about – Finding extended auto protection that “makes sense” for you. You’ll find that we’re very straight forward and easy to deal with. If we can’t get you the peace of mind that you seek, then we’ll come right out and tell you. How about getting one of our famous free, no obligation quotes?

Simply fill in the short form to the right, and we’ll have some numbers for you quickly! You may also reach us direct if you’d like to chat live: 800-474-4716