- Is the car a hybrid/electric vehicle?
The cost of a vehicle service contract depends on several factors. Get your free, customized quote from CARCHEX.
Disclosure: This content was produced by an independent editorial party for the purposes of educating our customers, and is not influenced by the other business operations of CARCHEX.
An extended car warranty is protection from the vehicle manufacturer against mechanical breakdowns. This term is sometimes incorrectly used to describe coverage from third-party providers, which offer similar protection plans called vehicle service contracts. CARCHEX is a vehicle service contract provider.
Are you thinking about buying a vehicle service contract? As you’ll find when shopping for any type of vehicle protection plan, cost should definitely be a factor in your decision.
You may be surprised to learn that vehicle service contract costs can vary greatly depending on your car, driving habits, and where you purchase your vehicle service contract. Knowing what factors go into the cost of a coverage plan can help you determine if it’s worth it. For many drivers, purchasing a vehicle service contract from a third-party provider offers the best coverage, benefits, and cost-savings over a dealership service contract.
|
|
|
|---|---|---|
|
|
|
|
|
If you purchase extended coverage from a manufacturer, the cost may be added to your car payment. The finance manager or sales representative will likely explain how convenient it is to have your vehicle service contract cost rolled into your existing financing. At first, this may seem like an easy way to make monthly payments to protect your vehicle. However, you end up paying interest on the contract, and it becomes more expensive in the long run.
With third-party companies, your service contract is completely separate from your car payment to the dealership. Depending on your protection plan, you may still be able to make convenient monthly payments. Unlike a dealership extended warranty, you won’t have interest or financing costs added on top of the vehicle service contract cost.
Benefits of a Vehicle Service Contract
For many car owners, a vehicle service contract cost is a major factor in whether they purchase a vehicle protection plan. However, cost shouldn’t be the only factor in determining if a vehicle service contract is right for you. There are many benefits that quickly outweigh any costs.
| Vehicle Service Contract Benefit | Why It’s Important | Alternative |
|---|---|---|
| Additional protection with manufacturer’s warranty | When you buy a new car, you’ll get a manufacturer’s warranty. However, this warranty won’t cover everything that can go wrong with a new car. An extended vehicle service contract helps bridge the gap to cover repairs for your vehicle. | Without an extended vehicle protection plan, you’ll pay out of pocket for repairs not covered by your manufacturer’s warranty. This can be especially expensive for luxury cars like Audi or Tesla. |
| Coverage after factory warranty ends | Your manufacturer’s warranty will expire usually between 3–5 years or 36,000–60,000 miles after buying your car. Extended vehicle service contracts give you a way to continue coverage and peace of mind. | Once your manufacturer’s warranty expires, your car is not protected by any coverage, and you’ll have to pay for any repairs. |
| Coverage for common repairs for your vehicle | Knowing your car’s reliability rating, such as those provided J.D. Power or Consumer Reports, you can gauge how likely certain repairs may be and get a service contract that covers those repairs. | Cars from brands like Toyota and Chevy have good reliability, but no car is free of repairs. A protection plan can be the difference between stomaching an expensive repair or having the cost covered. |
| Keep your vehicle protected as it ages | As cars age, they become more likely to develop issues and need repairs. Extended service contracts are especially important for covering major systems in cars with high mileage. | Depending on the type of repair for your older vehicle, you may decide the price of repairs isn’t worth it and not have them completed. This can lead to a complete breakdown and you searching for a new car. |
How Can I Find the Best Deal?
Dealerships often mark up the cost of a vehicle protection plan so there’s room to negotiate if you’re informed. By waiting and shopping around, you can definitely find a plan that works for you.
It’s also wise to know that you don’t have to buy a vehicle service contract at the time of your auto purchase. You don’t have to succumb to the pressure of buying on the spot from a pushy salesman. In fact, to get the best deal on your extended vehicle protection plan cost, buying from a third-party provider is your best bet.
There are many third-party companies that offer vehicle service contracts, so it’s important to compare the benefits of these companies. Take a look to see how CARCHEX compares to the competition:
| CARCHEX | Endurance | Concord Auto Protect | Liberty Bell Auto Protect | |
|---|---|---|---|---|
| Years in Business | 25 | 18 | 11 | 14 |
| BBB Accredited | Yes | No | No | No |
| BBB Rating | A+ | A- | F | NR |
| Customer Complaints | 100+ | 3,000+ | 300+ | 1+40 |
| Insured Plans | Yes | Yes | No | Yes |
| Coverage Levels | 5 | 5 | 3 | 3 |
| Deductible | $0–$200 | $0–$200 | $100 | $0–$100 |
In addition to a great BBB rating and a long list of endorsements from experts in the auto industry, CARCHEX keeps the cost of a vehicle protection plan affordable. We’re able to get you the best possible price by working with the top service contract providers available. Since they’re all competing for your business, we negotiate the best price and pass it on to you.
Get the Most for Your Money With CARCHEX
If you’re considering adding coverage to a new or used car, CARCHEX makes it easy for you to find the best price. Not only do we work with you to find the right deal, but our excellent customer service makes it easy and convenient for you to use the coverage plan should a breakdown occur.
Our five different levels of vehicle coverage allow you to choose the right amount of protection for your car and get the best vehicle service contract:
- Titanium Coverage—This is our highest level of protection and a great choice for new car owners.
- Platinum Coverage—This is stated component coverage for vehicles, which can be an affordable way to maximize coverage and minimize costs.
- Gold Coverage—With flexible terms and component coverage options, this level is great for vehicles over 60,000 miles.
- Silver Coverage—Get up to seven years of protection on your high-mileage car’s major systems.
- Bronze Coverage—These powertrain plans keep your car safe from the most expensive repairs.
In addition to one of the largest selections of protection plans available from third-party companies, CARCHEX provides added values for customers. We understand that choosing a vehicle protection company doesn’t just depend on price, and work hard to make sure we provide the best customer service. Benefits of choosing CARCHEX for your extended vehicle service contract include:
- Flexible Payments Options—We offer monthly payment plans to help make your service contract more affordable.
- Repair Shop Choices—We’re partnered with over 30,000 repair facilities across the country, so feel free to have repairs completed at your local shop, national chain, or dealership.
- 30-Day Money Back Guarantee—We think you’ll love our services, but if you don’t, we’ll give you your money back.
- Customer Experience Above All—That’s our Brand Promise, and we work hard to make sure you have the best customer service and claims process possible.
- 20+ Years of Experience—We’ve helped car owners reduce repair costs for two decades, and we’ve established ourselves as leaders in the vehicle service contract industry.
- Roadside Assistance—All plans include 24/7 roadside assistance, towing service, rental car options, and other benefits.
Get a free vehicle service contract quote and find out if buying a plan is right for you. CARCHEX has received an A+ rating from the Better Business Bureau, and we have a perfect score from Thoroughly Reviewed. You can also speak to one of our specialists by calling us toll-free at 866-261-3457.
Sources:
Auto Credit Express: https://www.autocreditexpress.com/blog/should-i-buy-an-extended-warranty-on-a-used-car/
JD Power: https://www.jdpower.com/business/press-releases/2019-us-vehicle-dependability-studyvds
Edmunds: https://www.edmunds.com/auto-warranty/five-questions-to-ask-before-you-say-yes-to-an-extended-warranty.html
Real Car Tips: http://www.realcartips.com/warranties/160-how-to-negotiate-extended-warranty.shtml
Better Business Bureau: bbb.org/greater-maryland/business-reviews/extended-warranty-contract-service-companies/carchex-in-hunt-valley-md-23015869
Thoroughly Reviewed: https://thoroughlyreviewed.com/car-warranty/extended-car-warranty-company-reviews/