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PHOENIX, AZ, January 28, 2023 /24-7PressRelease/ -- The auto industry has been disrupted in the last few years. The production of new vehicles by U.S. auto manufacturers reduced considerably during the pandemic in response to the shortage of computer chips and reduced demand due to the slowing economy.
Auto manufacturers had to figure out how to overcome the chip shortage problem. In 2022, the prices of new vehicles in the country hit a new high even as the production of vehicles started improving. CarGuard Administration experts are optimistic about the auto industry in 2023.
The Current State of the Car Market in 2023
Currently, the supply of new vehicles is picking up. It's important to note that the low supply of new vehicles increased the demand for used cars. As a result, used car prices shot up.
As car manufacturers continue to ramp up production, increasing the supply of new cars will ease the pressure on used cars. As a result, used car prices are expected to drop to normal levels.
The Impact of Rising Interest Rates
Recently, the interest rate increased to control the high inflation experienced in the economy. As a result, the cost of car financing, as well as the cost of buying a new car, increased to record-high levels.
Since things are turning around, the interest rates are expected to lower soon. This means that the cost of new cars will soon reduce.
Since supply is also increasing, new car prices in 2023 are expected to drop. Therefore, it may be more economical for consumers to buy new cars instead of used cars.
Guide to Protecting Your Car
The beauty of buying a new car is that the vehicle comes with a warranty. This means that for 3-5 years, consumers do not need to worry about costly repairs as the vehicle comes with a manufacturer's warranty. The manufacturer will pay for vehicle maintenance and the replacement of costly parts.
Once the manufacturer's warranty expires, the vehicle owner will be left exposed. Fortunately, CarGuard Administration has a solution. With a vehicle protection plan from CarGuard Administration, consumers can be assured of getting sufficient coverage.
What is a Vehicle Protection Plan?
This is a contract between CarGuard Administration and the client. The client agrees to pay a premium, and in return, they get protection. Vehicle protection plans are meant to fill coverage gaps.
For instance, if a manufacturer warranty has coverage gaps not covered by a comprehensive insurance policy, buying a vehicle protection plan from CarGuard Administration would be a good idea.
Vehicle Protection Plans Offered by CarGuard Administration
CarGuard offers three main plans for different types of clients. These are; platinum, gold, and powertrain plans.
The platinum plan offers bumper-to-bumper coverage and is an exclusion type of vehicle protection policy. It covers every component in a vehicle except those that are listed.
The powertrain plan is the most basic. It only covers the engine, turbo supercharge, transfer case, drive axle, and transmission.
The most popular vehicle protection plan is the Gold plan. It only covers components listed on the contract. Consumers are advised to read the terms and conditions of their vehicle protection plans before signing them. This will help ensure they can make informed decisions.
Do You Need a Vehicle Protection Plan?
A faulty ABS control module costs around $1,082 to fix, while an airbag module costs $1,250 to repair. Repairing or replacing an engine costs more than $7,349. All these expenses can be avoided by purchasing a vehicle protection plan.
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