For many, buying a new vehicle is a stressful and lengthy process. You’re considering your wants and needs, processing factors like the vehicle’s features, gas mileage, and safety rating, and discussing finance and warranty options. Once you’ve found the right vehicle and settled on your loan’s cost and term, you’re likely to begin looking into warranty options and anything additional. Generally, new and some used or certified preowned vehicles come with a limited warranty that lasts for a specific period or the number of miles. However, when the warranty expires, the vehicle owner is then fully liable for any repairs or services. This is where the importance of a vehicle service contract (VSC) comes into play:
Preparation for Unexpected Repairs
Remember, a VSC isn’t actually a warranty, but a contract that covers repairs for most mechanical issues. If you’re someone who holds on to a vehicle for an extended period, the possibility of the factory warranty expiring is evident. A VSC is designed to help protect you from unexpected repair costs following the expiration of your warranty. Vehicles repairs can add up quickly. The older a vehicle gets, the more likely repairs from mechanical issues and a consistent increase in miles becomes. With a VSC, you can better prepare for these costs.
Comprehensive Coverage
VSC’s tend to be more extensive than a vehicle’s factory warranty, as they cover many mechanical and technical aspects of your vehicle. It’s important to remember that VSC’s can vary, depending on if you purchase them through your dealer or vehicle manufacturer, or a third party company. In most cases, though there are variations, VSC’s cover repairs and services beyond the coverage of a standard factory warranty. Some repairs that are covered under a
VSC includes:
- Transmission
- Air Conditioning
- Water pump
- Engine
- Navigation
Depending on your VSC’s deductible, contracts can also cover costs for parts, labor, and diagnostics.
Great for High-Mile Drivers
Factory warranties tend to expire after a given amount of time or miles driven. For high-mile drivers, a VSC may be a great option to consider. VSC’s are generally available for purchase at any time, despite the vehicle’s age or mileage. So, if your car has 80,000 miles on it, but is still in good working condition, a VSC can provide you with extended protection.