Should You Buy An Automotive Extended Service Contract?

By: Jerry Christopher

The decision to purchase an extended service contract or
mechanical break down policy as they are sometimes called is a
decision that has many variables. Depending on the age of the
vehicle, the usage, how long do you plan on keeping the vehicle
for are just a few questions that need to be considered.



If you look online, some of these so called guru's who write
scam pieces will tell you--Don't Buy--it's a scam. I whole
heartily disagree with their opinions, I question if they have
real world knowledge and experience to begin with. If they did,
then I firmly believe their opinion would be other wise.



The scam comes when you are charged outrageous and inflated
prices for an extended service contract, they are not cheap to
begin with, but those who exasperate the cost are the ones who
are taking advantage of unsuspecting consumers. Or perhaps even
requiring you to purchase as a condition of buying the vehicle,
you should never be forced to buy under any circumstances.



With automotive repair labor rates ranging easily up to $100.00
per hour or more, it doesn't take a huge repair to cost you
major bucks, and with the electronics and technologies of
today's automobiles, parts prices are equally as expensive.



During my 26 years in the automotive service industry, I can
recall countless and numerous times where customers wished that
they had purchased, and those that did were glad they made such
a sound financial decision.



Consider the following examples of repair cost:



Air Conditioner Repairs can easily cost $1500.00 for compressor
replacements. Transmission Overhaul or Replacements--$3000.00
Water Pump replacements--$600.00 Power Steering Pumps and
Steering Gears--$600-$2000.00



However, don't be mislead into believing a mechanical break down
policy covers every nut and bolt on the vehicle, there are
variables and different kinds of policies as well. Some cover
seals and gaskets, wear and tear items, consequential damages
etc and others don't. Be aware of what it does and does not
cover before buying, this will save you a lot of grief in the
event you have a mechanical failure.



It is a major decision, and one that requires weighing the
advantages and disadvantages. My personal and professional
opinion is that if you are going to use the vehicle on a daily
basis, you plan on keeping for 2 years or more after the
original factory warranty has expired, then you should purchase
the extra protection.



It is after all, like an insurance policy, you hope that you
don't have to use it, but it will give you some peace of mind in
the event that you have to have an expensive repair.

About the author:
Jerry Christopher/Owner http://www.usedcarwise.com offers a new
and innovative training course teaching you "How To Buy A Used
Car The Right Way"