Are Vehicle Service Contracts Worth It?

Are Vehicle Service Contracts Worth It?

Purchasing a vehicle is a major decision, and one that comes with many questions to consider. What kind of vehicle? What brand, color, make, model is best for my needs? What budget should I try to stay within? What about an extended warranty? These questions help you make a decision on your new vehicle purchase, but what about some of the other questions you might not think about before everything is finalized at the dealership? Your dealer may mention a vehicle service contract, also known as an extended warranty. You may not know what that is or you may have heard negative things about VSCs, which may lead to you ask "is it worth it?"

Consider Your History With Vehicles
Extended warranties cover repairs that occur after the manufacturer's warranty has expired. If you think about your past history with vehicles, what do you remember? If you only buy brand new vehicles and tend to own them for three years or so, and trade it in, a VSC may not be worth it since your car will be covered by its manufacturer warranty. However, if you buy pre-owned vehicles and tend to keep them for multiple years, a VSC is a very smart way to protect your purchase and your pocket. With a VSC, you’ll have the peace of mind knowing you could be covered for a number of problems you may face with your vehicle.

Think About What You Would Like Covered
There are a variety of VSCs out there, and not all will focus on what you would like covered. Here’s where doing some research before heading to the dealership will come in handy. Just as you thought about your vehicle history, it’s important to consider what could happen in the future. A few things to look for may include: roadside assistance, suspension, overheating, trip interruption, nationwide protection, etc. Some VSCs could include a car rental if your vehicle will need to be kept overnight at a mechanic’s shop.

If you are planning on purchasing a pre-owned vehicle, take the time speak to your dealership on the coverages they offer for the vehicle you are looking for. Ask your dealer how to take advantage of 0% VSC financing. Omnisure is the market leader in service contract payment plans, offering 0% interest and flexible payment plans up to 24 months.