While most new vehicles include a modest comprehensive warranty coverage period (3 years or 36,000 miles, whichever comes first), that late-model used car you’re considering may already be out of coverage due to exceeded time or miles. This means that alongside the monthly car payment, you’re also responsible for the cost of each and every repair. And, while no one likes to hear it, the price of parts and labor continues to rise year after year. If a moderate-to-major repair is needed, the ticket on such a repair could top $2,000!
By including an extended service contract many of those costly repairs would be paid on your behalf, leaving you responsible for only a small deductible (typically $100-$200). With an extended service plan, a formidable $2,500 transmission repair which would really strain the family’s budget instantly becomes a much smaller matter, keeping your vehicle on the road and your monthly budget in check!
Is extended service coverage right for your next used car purchase? Whether you are paying cash or financing at a local bank, a service contract is the ultimate way to ensure as much continuity in your monthly budget as possible. It’s good to have peace of mind that if a moderate-to-major mechanical breakdown occurs, the parts and labor for covered repairs will be quickly and affordably addressed. You’ll lock in the best prices for both ahead of time because your extended service plan guarantees it and pay for them both!
Okay, so all of this sounds great. But, how much do extended service plans cost? Typically, the very best plans, like Ford PremiumCare, cost between $28-$45 per month on a payment. This type of plan covers over 1,000 components, provides 24/7 roadside assistance, hotel room and towing reimbursement, and parts and labor coverage at each and every Ford Dealership in North America. The vast majority of used car and truck buyers can obtain the best coverage for the price of a monthly dinner for two as a fast casual restaurant. It really is that affordable!
Some folks choose to “take their chances” to “roll the dice” and not opt for the extended coverage. But, as I can immediately attest, the service department waiting area in my dealership plays host to countless customers per month, some who sit patiently as a covered repair is performed on their vehicle, and others who sit nervously waiting to learn exactly how much the parts and labor will be for their unprotected repair. The difference between these two customers is about $1 and change per day! I’d say that’s money well spent!
Jason K. Boothe is Financial Services Manager for Vallery Ford in Waverly, Ohio.