FI showroom red and grey logo
MenuMENU
SearchSEARCH

Ally: Soaring Costs Make Case for Service Contracts

An Ally/Harris survey of U.S. consumers found only 21% had purchased a vehicle service contract, propelling their average five-year maintenance and repair costs to nearly $2,000.

August 26, 2019
Ally: Soaring Costs Make Case for Service Contracts

“We see it all the time. People come in and see their repair costs, and they really don’t know if they can afford it,” said Reginald Garrett, a service consultant at Sellers Buick GMC in Farmington, Mich., in a video announcing the results of an Ally-ordered survey that found only 21% of American car buyers were covered by a vehicle service contract.

1 min to read


DETROIT — On average, Americans spent $1,986 on vehicle repairs and maintenance in the last five years, according to a recent Ally survey conducted online by The Harris Poll among 2,012 U.S. adults.

Respondents aged 18–34 paid an average of $2,334 for vehicle maintenance and repairs in the past five years — a significantly higher financial burden than baby boomers and older adults. In comparison, adults 55 and older spent $1,654, on average, during the same timeframe.

Ad Loading...

Ally’s survey results come on the heels of research from the Federal Reserve that found that nearly four in 10 adults would not be able to cover unexpected expenses of $400 without selling something or going into debt.

The Ally survey also found that only 21% of Americans have purchased a vehicle service contract or extended warranty in the last five years.

“Many Americans rely on their cars to get to work and losing access to your vehicle can be a major disruption and huge source of stress — particularly if you can’t cover the repair cost,” said Mark Manzo, president of insurance at Ally Financial. “The financial strain can be even more daunting for young people who are early in their careers and may be paying down student loan debt as well.”

More F&I

Woman in casual clothing sitting at a desk
F&Iby Rick McCormickMarch 31, 2026

Curb The Confusion

Talk to F&I customers like you’d talk to a friend, without industry lingo or sales-like questions, and use hard proof to show, not tell, them about a need.

Read More →
Photo of man's hand on laptop computer keyboard with blank screen
F&IMarch 16, 2026

There Is Always one More Product

Helping F&I customers understand complementary offerings is likely to lead to more sales, based on the success of a high-performing practitioner of the philosophy.

Read More →
REGISTER FOR EFI 2026
F&Iby Kate SpataforaMarch 16, 2026

EFI Conference Extends Early Bird Discount as Room Block Nears Capacity

Ethical F&I Manager's Conference will take place at The Cosmopolitan Las Vegas on April 13–15, 2026.

Read More →
Ad Loading...
Industryby StaffMarch 6, 2026

Explore the 12 Rules for an F&I Life at EFI

EFI 2026 will take place April 13–15 at The Cosmopolitan Las Vegas.

Read More →
F&IMarch 4, 2026

Creating Your Own Economy

In this video, Reese Dailey explains how effective follow-up drives better results across the dealership, including increased sales, higher F&I penetration, and stronger customer retention.

Read More →
Industryby StaffMarch 2, 2026

Prove You Can Do F&I at EFI

‘So You Think You Can Do F&I’ is a live role-play contest taking place at the 2026 Ethical F&I Managers Conference.

Read More →
Ad Loading...
Image of two human hands, one holding the word yes, the other the word no
F&Iby Hannah MitchellMarch 1, 2026

Expect Yes in the F&I Office

It may be human nature to back off when a customer seems to say no to a product or service. But experts say F&I managers should operate as though the answer will be the opposite.

Read More →
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Ad Loading...
F&IFebruary 13, 2026

Business Office Blueprint

Try following these 20 steps to greater success in the dealer F&I office this year.

Read More →