NEWS & INSIGHTS

Players in the Vehicle Service Contract Space

Players in the Vehicle Service Contract Space

So you’re thinking about buying a vehicle. As with all major life purchases, a number of steps need to occur before the sale is final. Aside from selling you a vehicle, dealerships will also offer you products aimed to preserve and protect the life of your vehicle. As you navigate through the sales process, a lot of words will be thrown at you like “Vehicle Service Contract” “Extended Warranty”, “Payment Plan”, and more. If this is your first vehicle or you haven’t purchased a new one in a few years, the process can be confusing. In an effort to help clarify this process for you, here’s a breakdown of who to contact for each step along the way to ensure everything runs smoothly.

Auto Dealerships

Each of the product dealerships will offer different types of protection to your vehicle (i.e. Theft Protection, Paint & Fabric Protection, Engine Protection, etc.) Yet, the most comprehensive and popular product offered is a Vehicle Service Contract (VSC), sometimes referred to as Extended Warranties. If you are buying a brand new vehicle, you automatically get a manufacturer’s warranty with it, but if you are buying a pre-owned vehicle that is out of manufacturer’s warranty or close to running out, a Vehicle Service Contract is a critical investment to help protect your purchase. A VSC gives you the opportunity to cover the costs associated with repairs, including parts, labor, and/or sales tax, for certain repairs or replacements that may be required after the manufacturer’s warranty expired. It is important to highlight that different VSCs have different coverage levels and it is critical you understand the terms and conditions of the product being offered to you.

Vehicle Service Contract Providers (Also known as Administrators)

So what is covered within your Service Contract? And how do you pay for this VSC? If you are financing your car through the dealership, the most common method of payment is to roll over the cost of the policy into the auto loan. While that’s a simple way to buy the coverage, it also an expensive way because you will be paying interest on that product for the life of the auto loan. A smarter and more affordable way to buy the VSC is to ask your dealership for a 0% interest installment plan. Most dealerships work with VSC Installment Plan Companies.

Payment Plan Provider

This is where Omnisure comes into play. Instead of paying a big upfront cost, or interest by rolling the product into your auto loan, Omnisure will give you an interest free payment plan solution up to 24 months. You just have to put a small down payment and your credit card will be charged monthly for the length of your payment plan of choice.

Now that you know the key elements within your car buying experience, the process should make more sense to you, whether you are an experienced buyer or are looking for your first vehicle. Buying a vehicle is a large investment on your side and it is important that you understand how to protect your purchase. If you have further questions or would like to learn more about Payment Plan options, contact us today to learn what we can do for you.