High Interest Rates Make Long-Term Vehicle Ownership a More Attractive Option

The recent Federal Reserve rate hike has led to higher borrowing costs, causing many Americans to reconsider their vehicle ownership strategy. With average new-car loan rates at around 7% and used-car loan rates at about 7.5%, keeping a current vehicle longer can be a more cost-effective option for some drivers.

According to Nick Hamilton, CEO of CarShield, 'For many families, today's vehicle isn't just transportation, it's one of their biggest financial investments.' With the goal of making unexpected repair costs more manageable, CarShield is helping drivers protect one of their largest assets by providing coverage for unexpected repairs.

Keeping a low- to no-monthly payment on an aging vehicle can free up hundreds of dollars each month that can be directed towards savings or debt repayment. Even if an older vehicle requires occasional repairs, those costs can be manageable with a vehicle service contract and may still be lower than the cost of financing a new vehicle.