Should You Get an Extended Service Contract?

May 1st, 2020 by

Having peace of mind in regards to your car is essential. There are a lot of options and products available to help provide that peace of mind, and in this installment of our blog, we will be looking into one of the more comprehensive solutions: extended service contracts. 

Additionally, we will cover the pros, cons, and questions to ask yourself before getting one.

 

What Is An Extended Service Contract?

So what is an extended service contract? They can differ from place to place, but in most cases, they cover repairs when the factory warranty ends. Typically, factory warranties last around 3 years or around 36,000 miles on the car. After that, if you don’t have an extended service contract, any repair costs will come directly out of pocket.

 

How Long Will You Keep The Vehicle?

One of the main things to consider when deciding on an extended service contract is how long you are looking to keep the car it will be connected to. If this is a short term vehicle there is a lower chance that serious repairs will arise while the car is in your care. If you’re looking to keep this vehicle for a long period of time, say 7-10+ years, or know you will be putting considerable miles on it then adding a couple of years of extended coverage might be something to look into.

 

Researching the Vehicle and the Contract

Now before signing up for an extended service contract, it’s important to do some research on how the vehicle will depreciate over time. It might be that the vehicle in question only has a certain amount of years before it’s not worth the money you’re paying on the chance it needs serious maintenance. It’s also crucial to understand what will be covered in the extended service contract. Not all service contracts are created equally and knowing exactly what you’re paying for and what the exact stipulations of the extended service contract will help you better understand what to do when an issue does arise.

 

What If The Car Is Used?

If you’re looking into getting an extended service contract on a used vehicle it’s important to keep a few things in mind. First of all, how old is the vehicle? How many miles are on the vehicle? A vehicle’s age and mileage are used to determine the coverages available to you and the duration of a potential extended service contract. There are extended service contracts available on almost every used vehicle, and there are a variety of things that can be covered on a vehicle.

 

Should You Get an Extended Service Contract?

The main thing to keep in mind with extended service contracts is that it’s an investment. This is money you are putting towards peace of mind in regards to your vehicle. If you believe that your vehicle will have little to no issue over the next few years then it might be a better idea to save that money for something else. Then again, do you want to be stuck having to pay thousands out of pocket for a repair that could have been covered? At the end of the day, we suggest you do what you believe is best for your situation. Shelor Motor Mile will be here to help you with your car needs regardless.

 

If you have any questions or comments regarding this blog or anything relating to extended service contract feel free to leave a comment or reach out to us at info@shelor.com. Thank you for reading and remember to stay safe.

 

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