The Best New Year’s Resolution: Protect Your Auto Investments
New Year’s resolutions rarely stick — telling yourself you’ll ‘save more money’ or ‘spend less’ is too generalized to make a difference in the way you manage money. So in 2022, make a promise to yourself that will actually make a difference in your bank account by protecting your auto investments.
Because the yearly, quarterly, and monthly sales goals of car dealers all converge at the end of the year, it’s become known as the best time to buy a new set of wheels. Late December and the first few days into the new year bring about incentives that benefit both dealers’ sales targets and your wallet. Year-end deals for buying and leasing cars may offer low or no-cost financing, cash-back offers, and the lowest prices of the year.
This year, things are a bit different: The cost of a new car has skyrocketed with vehicles in short supply, in part due to shortages of computer chips and supply chain issues. Across the industry, new-vehicle prices have increased for seven months in a row. According to Kelley Blue Book, the average transaction price for a new vehicle in October 2021 was up 12.9% from a year earlier, reaching $46,036.
As noted by Tim Meenan, SCIC Executive Director and General Counsel of SCIC, GAPA, and MVPPA, even with lower sticker prices, cash-back offers, and special financing deals it can be challenging to navigate everything. As vehicles become more costly, vehicle protection products help save consumers so much down the road.
Protecting your auto investment is essential for maintaining a reliable vehicle that will last through many New Year’s celebrations. That’s why to get the best bang for your buck, it’s just as important to take additional steps on the front end as it is to negotiate prices or find the year-end sale that best fits your needs. There are many ways to protect your auto investments, including purchasing a guaranteed asset protection (GAP) waiver, service contract, or motor vehicle protection product to ensure that you’re covered against issues with tires, windshields, key fobs, paint damage, and other items.
Looking past the year-end dealership sales, consumers ultimately deserve reliability in their vehicles to start off the new year. Meenan suggests that investing in a service contract or GAP waiver can help combat unexpected budget-busters.
If you are resolved to save money in the new year, it will be important to have resources that will benefit your wallet and protect your prized new vehicle. Proactive resources like GAP waivers, service contracts, and motor vehicle protection products are perfect for anyone planning to invest in a new vehicle for the new year. It’s exciting to end the year with a brand new vehicle purchased at a great price, but it’s important to add comfort to that excitement by starting 2022 off with a resolution to protect your auto investments.