Are vehicle service contracts worth it for used vehicle owners?

By Product Expert | Posted in FAQs, Finance on Wednesday, March 17th, 2021 at 10:58 am
A stock photo of a person signing some paperwork.

Should I buy an extended warranty for my used car? 

Everyone who owns a car, truck or SUV fears an unexpected mechanical breakdown. Nobody needs the inconvenience of having a car in the shop nor the unexpected repair bill. New vehicles offer the protection of a factory warranty, but what about those of us who choose something pre-owned. If you’re wondering, ‘Should I buy an extended warranty for my used car,’ the financing experts at Third Coast Auto Group have some advice. Like anything else in life, there are pros and cons to buying an extended warranty. Our team wants you to have the best possible information before you make any decision regarding your financial or automotive future.  

READ MORE: Can a low credit score make car insurance more expensive? 

What are the pros of having an extended vehicle warranty? 

On the surface, an extended vehicle warranty, or vehicle service contract, sounds like a great deal. For a nominal monthly fee, the owner of a used car can get the peace of mind that comes with having a regular factory-backed warranty. Additionally, extended warranties are pretty easy to find, many automakers, AAA and several car insurance companies will sell them. These plans can vary in several ways, including how long they will be valid as well as in coverage and price. You will definitely want to do your homework before spending additional money. 

Cons of an Extended Vehicle Warranty 

A lot of financial experts and consumer advocates actively advise against getting an extended vehicle warranty. For the most part, these people claim that warranties aren’t worth the expense. In fact, studies show most people who purchase extended vehicle warranties never use them. The policies are often filled with exceptions and exclusions that may not cover very much. As always the devil is in the details.  

Are those vehicle warranty robocalls legit? 

You have almost certainly received an unwanted phone call from a recording telling you that your vehicle’s warranty is out of date. These are almost certainly an effort to sell you an extended vehicle warranty that likely isn’t very helpful to the purchaser.  

If you truly would like to buy an extended vehicle warranty, be sure to read all the fine details and choose a reputable company. Contact Third Coast Auto Group if there is anything we can do to help you find a safe and reliable vehicle.