Use vehicle protection products to accelerate sales

2018 is shaping up to be a slower year for auto sales and lending after two years of record-setting sales. Interest rates are increasing, and while those increases aren’t jaw-dropping, they’re likely to stop some auto buyers and borrowers from replacing their vehicles.

Higher auto loan interest rates increase monthly payments, which can push buyers to consider driving their existing vehicles longer than they originally hoped or intended. Longer-lasting, more dependable vehicles have made driving an older car much easier and more popular in recent years, with the average age of U.S. cars on the road now at 11.5 years, over two years older than the average just ten years ago.

Drivers who have no choice but to buy a replacement vehicle are more likely to consider buying a used car over a new car when interest rates—and therefore their monthly payments—rise. Used cars may be easier than ever to find, since the popularity of leasing has led to large numbers of late-model used vehicles returning to dealerships. Unfortunately, of course, used cars don’t offer as many auto lending sales opportunities as new vehicles, and the opportunities they do offer are usually not as substantial.


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