For many people, car breakdowns and repairs end up causing big damage to their budgets. That’s why having a vehicle service contract can help. Sometimes referred to as extended car warranties, vehicle service contracts take over when manufacturer warranties run out.
The fact is, expenses from car emergencies always tend to come at the worst times, when money might be tight, and you have other obligations to take care of. While financial experts advise setting money aside for emergencies, it takes time and dedication to build up ample reserves to cover a major auto repair. Pile on a couple of those, and you can plow through an emergency fund rather quickly.
To avoid that scenario, explore three ways a vehicle service contract can help you stay within your budget:
Avoid Unexpected Surprises
A vehicle service contract allows you to pay a monthly fee that will cover you for the majority of car repairs involving major parts like the engine, transmission, and more. There are typically different options, so you can choose the plan that works for your financial situation and needs. In a sense, it’s almost forcing you to prepare for future repairs so that you’re not caught off guard and forced to rely on plastic when something breaks down. Just be sure to thoroughly go over your contract so you understand what is and is not covered.
Enjoy Peace of Mind
If you’re planning on keeping your vehicle for a number of years, it’s only logical to expect that things will go wrong from time to time, and replacement parts may be needed. Having a vehicle service contract can help offset and sometimes eliminate a lot of those expenses. Plus, some contracts include roadside assistance, towing, and even rental car reimbursement, so you never have to worry about being left stranded.
Extend the Life of Your Vehicle
Without a tremendous mechanic bill to stress over, you’ll be more likely to move forward with repairs and service that will keep your vehicle running safely and efficiently. As such, you can get more mileage—literally—out of your auto purchase, and won’t be forced into finding a new one when you’re not financially ready.
Unless you have a brand new car, a vehicle service contract is something worth considering.