Auto Extended Warranty Providers

Business for Sale Industry Economics




Projected CAGR

2004 - 2019


2019 - 2025






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Over the five years to 2019, the Auto Extended Warranty Providers industry is expected to expand modestly as a result of macroeconomic growth, especially at the market level.

Automobile buyers can get warranties from industry operators that go beyond what a car’s dealer offers on a new product.

Automobile suppliers, retailers, and other third-party warranty vendors are also players in this sector.

Consumers normally buy car extended warranties or vehicle repair arrangements after their manufacturer’s warranty expires, so the market has benefited from the average age of the vehicle fleet in the United States rising an annualized 0.9 percent to 11.9 years over the five years to 2019.

Furthermore, an uptick in discretionary income allows buyers to buy new cars, which boosts sales of seller or dealer warranty contracts and boosts business revenue.

As a result, sector sales is forecast to rise at an annualized rate of 0.7 percent to $17.9 billion over the next five years, with 0.8 percent expansion in 2019.


Over the five years leading up to 2019, operators in the Auto Extended Warranty Providers market have benefited from improving customer economic conditions.

Strong sales of new cars, for example, boosted industry income in the early part of the decade, when car buyers opted to buy longer warranties at the time of purchase.

Furthermore, as the number of automobile registrations rises, so does the number of drivers and extended warranty contracts bought.

In addition, as per capita disposable income rises, customers are more likely to buy car extended warranty contracts after the manufacturer’s warranty expires.

While increased market competitiveness among industry operators is expected to stifle demand, the evolving existence of extended warranties plans, as well as the impact of positive trends in vehicle ownership that have continued during the economic recovery, are expected to boost industry revenue.

Industry sales is forecast to rise at an annualized 0.7 percent to $17.9 billion over the next five years, with 0.8 percent expansion in 2019.


Over the next five years, the Auto Extended Warranty Providers market is expected to expand at a steady pace. Since hitting all-time highs in 2016, new car prices are expected to marginally rise over the next five years.

As a result, demand for industry facilities is projected to rise as more customers opt for extended warranties while purchasing a new vehicle.

Overall economic growth will lead to increased per capita disposable income, which will boost overall business growth, similar to this trend.

This would make an expanded warranty offered by business operators more affordable for vehicle owners whose manufacturer’s warranties have expired.

As a result, market income is projected to rise by 1.1 percent annually to $18.9 billion in the five years leading up to 2024.

Business for Sale Indsutry Economics Auto Warranty Providers


This sector offers extended warranty insurance to car owners.

These warranty arrangements are usually included in the price of the car and are sold by the seller or auto dealer at the time of delivery.

This business also has third-party warranty suppliers that offer warranty plans after the car has been purchased.

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