As consumers continue keeping their cars for longer, the extended service contract industry is growing by the day. Over the years, advancements in technology and electronics have led to a tremendous increase in the cost of vehicle repairs hence the increasing popularity of extended service contracts. It’s not surprising that vehicle owners are eager to protect their investments after manufacturer warranties expire.
Whether or not you should extend your coverage is really a matter of personal choice as it depends on your budget and risk appetite. American Automotive Service Solutions understands the value of having an informed clientele. We believe that knowing some of the pros and cons should put you in a better position to make an informed decision.
They Can Be Customized
Unlike manufacturer warranties that vary with regards to time limits and mileage, extended service contracts are quite flexible. They give customers an opportunity to make their coverage complete where say the manufacturer’s warranty was light on a particular area. They also offer plenty of customizable options so you can choose the coverage you really need. And that means that the costs are often open to negotiation.
They Cover Costly Repairs
Today’s vehicles are more complex than ever, filled with electrical wires, computerized equipment and expensive technology. If such systems fail, especially when your warranty has expired, diagnosis, and repairs can be very expensive. Purchasing an extended service contract that covers your vehicles technological systems can save you plenty of time and money in the long run. Moreover, buying an extended warranty on a used car is a good way to provide yourself with security in case of unexpected repair bills. Another advantage is that extended warranties are transferable.
Limitations on Repairs
Extended service contracts will not cover all sorts of repair, and will vary considerably from one company to another. The devil is in the details. Be sure to read the fine print and get details on the exclusions. It’s important that you understand all inclusions and exclusions before making the decision to purchase. Reputable contract providers will give potential customers a list that includes all the parts, repairs and systems that are not covered by the contract.
Restrictions on Repair Providers
Some contracts may limit you to a short list of approved facilities or render your warranty useless if you move to a different region of the country so be sure to check such details before making a purchase. When shopping for third party contracts, ensure that the provider has enough approved repair shops in your area. It also helps to check that the warranty would be usable in a different region, say if you might be moving or going on a trip.
You May Never Use Your Extended Contract
If you buy a car and have it only for a short period of time before it needs any repairs, you may never see the returns on your extended service contract payments. But at the end of the day, you would have gotten your money’s worth in terms of peace of mind and worry-free driving.