Purchasing a vehicle is an exciting time! You can't wait to drive your "new" pre-owned vehicle home and show it to all your friends and family. In the shuffle of signing all your paperwork, your Salesperson may have asked you if you would like to purchase an Extended Vehicle Service Contract, but what is it, and do you need one? An Extended Vehicle Service Contract is also known as an Extended Warranty that would protect against unexpected repair costs that may result in significant out-of-pocket expenses in addition to or after the manufacturer's warranty ends. Extended Warranties & Vehicle Service Contracts typically exclude routine maintenance such as oil changes and tire replacements (consumerfinance.gov) though some Service Contract companies do offer tire replacement, tech repair, and other plans for additional purchase. Most Extended Warranties are designed for pre-owned vehicles because new cars are covered by an initial factory or Dealer Warranty. In most cases, you'll want to buy an extended warranty before the manufacturer's or Dealer's Warranty expires to avoid any gaps in coverage. caranddriver.com/research/a32878888/extended-warranty-for-car/ .
Is a Service Contract worth the purchase? Let's look at some of the costs of these unexpected repairs:
libertyautousa.com
No matter if you are buying brand new or used, unexpected breakdowns are bound to happen. If you are planning to keep the car for several years, then buying an Extended Vehicle Service Contract can be worth it especially if you are uncomfortable with the possibility of spending thousands of dollars on vehicle repairs.
