When you’re buying a used car, one of the biggest worries you have is that the car won’t last. You want to be able to drive the car either until you’re ready to sell it, or until it’s paid off. One of the best ways to protect yourself is with an extended service contract.
Before you buy an extended service contract, however, there are some questions you should ask yourself:
Is there a manufacturer’s warranty still in place, and for how long? If your used car has less than 20,000 miles, the manufacturer’s warranty will typically last for an additional 30,000 miles, or two to three years of typical driving. If you plan on keeping the car much longer than that, an extended service contract can be worth it.
How reliable is the model of car? Check out consumer information about the vehicle. While this isn’t a fail-safe method of knowing what kinds of repairs you might need, it should give you a ballpark idea.
Who is backing the service contract? Is it the manufacturer, or is it an independant company? If it’s not the manufacturer, you may not be able to have the vehicle serviced outside of your local area.
What is covered? Know what the service contract covers, and what it doesn’t. Make sure you understand what’s being offered.