Last month saw manufacturers of cars slash expenses for warranties to their lowest prices thus far this decade, according to a published report.
As the bounce-back from the Great Recession continues, sales are increasing but the expense rates that consumers are seeing are staying low, Warranty Week reports. Some suppliers are remitting payments as the process for acquiring reimbursements grows stronger. The past decade has demonstrated challenges for automotive companies but regarding warranty cutting, those years have been remarkably successful.
Since the recession, sales volume has been returning to normal, but expense for warranties are presently lower.
Automotive sales over the past few years have seen warranty costs fall as a portion of sales. One key reason for this is vehicle quality is on the upswing as the cars do not break down as often and fixing them is less expensive, according to Warranty Week.
Superior, more efficient testing procedures have also undoubtedly played an important role in the decrease in warranty costs for auto manufacturers.