In today’s hyper-competitive auto loan market, lenders face the challenge of which products to provide to their borrowers in order to stand out; one of those products is an auto warranty. As automobile prices increase, so do the cost of repairs. With high automobile prices and high repair costs, even one major repair can cost more than the price of a borrower’s extended warranty.
The auto industry is innovative and exciting – every year, new vehicle models have better technology, more features, and sleeker designs. These modernizations appeal to consumers, but sometimes the added cost of repair isn’t considered on the initial purchase. Due to this, the demand for extended warranty programs is at an all-time high to protect one of the largest investments that consumers make. Complicated and expensive repairs cause as much of a problem for the lender as they do for the borrower. If your borrower can’t find thousands of dollars to pay for a repair, it puts the collateral at a much greater risk. Unexpected auto repairs can drain savings accounts and break budgets, and if they are left un-repaired due to lack of funds, the respective loan can become “underwater.” Give your borrowers peace of mind knowing that their future unexpected breakdowns will be covered while simultaneously protecting your assets. It’s a win-win!
Read our blog post: The Impact of Longer-term Auto Loans on Lenders
Golden Eagle Insurance helps solve this problem by offering a comprehensive option for mechanical breakdown coverage for all makes and models of vehicles. Our extended auto warranty products feature flexible vehicle service contracts that provide coverage on vehicles up to 11 years old with up to 150,000 miles on them. Lenders can use the auto warranty as both a borrower benefit as well as a revenue producer. Even the most reliable car breaks down, and when vehicles are one of the largest expenses a borrower makes, an extended warranty will ensure it’s always in prime mechanical condition. Cars in great mechanical condition provide peace of mind to the borrower and preserve the value of the collateral for the lender.
Golden Eagle Insurance offers 3 levels of coverage with longer terms each including wear and tear, roadside assistance, rental provision, and various optional features.
- Level 1 -Powertrain Coverage on vehicles up to 11 years old with 125,001-150,000 miles.
- Level 2 -Component Coverage on vehicles up to 11 years old and with 100,001-125,000 miles.
- Level 3 -Bumper-to-bumper exclusionary coverage on vehicles up to 11 years old and with up to 100,000 miles.
Golden Eagle Insurance also offers a host of additional products that are designed to protect a lender's assets and generate income, while providing real value to borrowers, including GAP and VRP. Extended Auto Warranty is just one of these offerings – contact us to discuss the many ways we can help create lifelong customers, and protect your collateral.
Read our blog post: 5 Reasons Your Customers Need GAP More Than Ever