Why Now Is the Smartest Time to Protect Your Vehicle: Rising Tariffs, Soaring Prices, and the Case for Extended Coverage

The automotive industry is on the brink of a significant shift, and consumers need to be prepared. The looming implementation of increased import tariffs on vehicles and auto parts—most notably a proposed 25% tariff on Chinese-manufactured components—could send shockwaves through new vehicle pricing in the U.S. In a time of economic uncertainty and increasing ownership costs, one thing is clear: purchasing a Vehicle Service Contract (VSC) now is not only practical—it’s essential.

The Tariff Effect: Why New Car Prices Are About to Climb

In April 2025, multiple reports confirmed that the U.S. government is finalizing a tariff policy that will dramatically raise the cost of imported auto parts and, in many cases, the vehicles themselves. These tariffs are expected to have a direct impact on manufacturing costs, which will be passed on to consumers through higher sticker prices.

According to industry analysts, new vehicle prices could rise by $2,500 to $5,000 or more, depending on the vehicle and parts sourcing. That means:

• Higher monthly payments for new car buyers.
• Steeper depreciation losses.
• ​And, most importantly, less affordability for the average consumer.

As a result, millions of drivers are deciding to hold onto their current vehicles longer, avoiding the new wave of inflated prices.
Consumers Are Keeping Their Vehicles Longer Than Ever BeforeYou’re not alone if you’re thinking twice about buying a new vehicle this year.
According to S&P Global Mobility, the average age of vehicles on the road in the U.S. has reached a record-high 12.6 years, and it's continuing to rise. In a market where new cars are increasingly unaffordable, vehicle longevity is no longer a luxury--it’s a necessity.
But here’s the reality: the longer you keep your vehicle, the more likely it is that expensive repairs will occur outside your factory warranty.

And that’s exactly where a quality Vehicle Service Contract comes into play.

Protect Yourself from Future Costs with a Vehicle Service Contract

A Vehicle Service Contract (often called an extended warranty) is not just an optional upgrade--it’s a proactive shield against the rising cost of vehicle ownership.

Rather than paying thousands of dollars out of pocket for repairs as your vehicle ages, a VSC covers many of those costs, providing peace of mind and financial predictability. With parts and labor prices also increasing due to inflation and tariffs, the value of VSCs is higher than ever.

Why FactoryProtect.com Is the Go-To Source for Smart Vehicle Owners

At FactoryProtect.com, we’ve built a trusted platform that helps consumers easily purchase top-tier protection plans online—without the markup of dealership pricing.

We’ve partnered with two of the most respected names in the industry:

Fidelity Warranty Services

Fidelity is backed by over 40 years of experience and offers some of the most comprehensive VSCs available. Their exclusionary coverage—similar to a manufacturer’s bumper-to-bumper warranty—covers virtually every component not explicitly listed as excluded. Plan highlights include:

• Platinum Coverage: Elite exclusionary protection for nearly all mechanical and electrical components.
• ​Gold and Powertrain Plans: Tiered options for vehicles of varying age and mileage.
• Benefits: 24/7 roadside assistance, rental reimbursement, and trip interruption.

CNA National Warranty Corporation

CNA National has earned a reputation for excellence with flexible, budget-conscious plans. Their coverage is especially attractive for vehicles no longer eligible for manufacturer warranties, with:

• Stated-component and exclusionary plans tailored to older and higher-mileage vehicles.
• ​EV-specific options for electric vehicles.
• Strong benefits, including towing, travel protection, and nationwide repair network access.

Compare, Customize, and Buy Online

FactoryProtect.com allows customers to compare Fidelity and CNA National plans side by side, making it easier than ever to choose the best coverage for your needs and budget.

There’s no need to visit a dealership or endure a high-pressure sales pitch--everything is done online, with transparent pricing and detailed coverage breakdowns.

The Cost of Waiting Is Going Up

If you’re waiting to buy a new car, or simply hoping your current vehicle avoids major repairs, here’s the truth:

• New vehicle prices are climbing—and will continue to do so.
• ​Repair costs are skyrocketing, especially for electronic and drivetrain components.
• Labor rates are rising across the country, with average shop rates exceeding $150/hour in many areas.
• Tariffs will only intensify these trends, compounding costs over time.

By locking in a vehicle service contract now, you’re protecting yourself from those rising expenses. And if you end up keeping your car for several more years—as most Americans now do--you’ll be grateful to have coverage in place when unexpected issues arise.

Final Thoughts

Between inflation, tariffs, and a cooling but still expensive car market, we’re entering a new era of vehicle ownership. In this environment, smart consumers are thinking long-term, protecting their investments and avoiding unnecessary financial risk.
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Purchasing a Vehicle Service Contract through FactoryProtect.com—whether from Fidelity Warranty Services or CNA National—is one of the smartest ways to do just that.

Stay protected. Stay ahead. Visit FactoryProtect.com today and lock in your coverage before prices rise even further.