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Finance – Vehicle Service Contracts

Vehicle Service Contracts

Extended Warranties

You may hear the term vehicle service contract also referred to as an extended warranty and for all intents and purposes, the two terms can be used interchangeably.  But how can you know if purchasing an extended warranty is the right choice for you? 

You have likely set aside budget for your monthly vehicle loan payment, but vehicle ownership comes with the potential for many other expenses.  These expenses often include mechanical breakdowns and granted your manufacturer’s warranty can offer a wealth of coverage, but what if the repair is not eligible or your warranty has expired? 

stranded driver who probably should have purchased a vehicle service contract

You may choose to pay for potential breakdowns when and as they occur or you could reduce or eliminate repair costs by thinking ahead.  A vehicle service contract allows you to transfer a portion or all of the risk to a third party just like you already likely do with your health insurance or homeowner’s coverage.  By paying a small monthly amount, you can protect yourself against unexpected repair costs. 

Avoid Potentially Expensive Repairs

Today’s vehicles are extremely complex and built with sophisticated electronics and high-end technology.  Customers often ask us if they should buy an extended warranty for their new car.  We generally tell them to look up under the hood of their vehicle.  There really isn’t much under the hood of a newer car or truck that a lay person will recognize other than the engine cover, the battery, the engine oil level dipstick, and the windshield washer fluid refill lid.  

Nowadays, every vehicle is engineered with dozens of computers.  These computers control everything from the dome lights to the volume of the audio system.  The dome light that stays on for a few seconds and then gradually dims down isn’t controlled by magical light bulbs, that’s a computer that does that.  When you press a switch to adjust the passenger side mirror, your car’s multiplex wiring system allows the electronic control module to send a packet of data to a different module to activate the motor that controls the power mirror.  And when any part of that system fails … the actuator motor, the heated mirror, or the blind spot monitor … unfortunately dealership technicians cannot fix it – they have to replace the entire thing. 

In today’s world, dealership technicians might be referred to as component replacement experts.  If your gas gauge quits working, technicians can’t simply replace the gas gauge.  Instead, they have to replace the entire instrument cluster.  If your air conditioner fan only has one speed, a technician can’t just replace a fan switch on your late model vehicle.  Rather, they may have to replace the entire climate control and navigation module.  We once had a customer whose daughter threw a hairbrush at their car radio’s touch screen.  Cracked the whole thing.  Replacement cost for that module was $2800.  The fact is:  we seldom repair anything anymore.   We diagnose, remove, and replace components.   And most of the time, those components are not cheap.

Purchase the Umbrella Before it Rains

If you were faced with an expensive repair, would you be prepared to pay for it out of your own pocket?   There are many vehicle service contract options to choose from and regardless of the coverage level you select, you will also receive emergency roadside assistance, rental car reimbursement and trip interruption coverage.   There are different amounts of coverage levels and payments options for the available service contacts.  Be sure to ask our Finance Department about the various options to find out what works best for you..

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Finance Department Hours

Mon:   8:00am – 7:00pm
Tue:    8:00am – 7:00pm
Wed:   8:00am – 7:00pm
Thu:    8:00am – 7:00pm
Fri:      8:00am – 7:00pm
Sat:     9:00am – 3:00pm
Sun:    Closed

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