Reasons To Buy Vehicle Service Contract For A Used Car
You need to do certain things for your vehicle to increase its value and after-market accessibility.
One of them is purchasing a vehicle service contract, especially when you have a used car. Considering that in 2018, service contracts generated $16.7 billion and continues to increase, you must consider getting one.
Moreover, owners of newer car models are buying into it. However, regardless of the income it generates, not many know why they should purchase vehicle service contracts. Here is a compilation of a few reasons you may find helpful.
Increases your car’s resale value
If you don’t plan on using your car for a lifetime, a vehicle service contract is the way to go. In reality, though, nobody uses a vehicle for a lifetime. That’s because the vehicles you use are like your smartphones. After a period of usage (whether short or long term), you will go in for another. With usage, some parts of a car will wear out and will require replacements. All these factors contribute to the value depreciation of vehicles.
Additionally, in the automobile industry, existing cars depreciate quicker because new models are released regularly. Automatically, that pushes older models to the outdated group. Therefore, it makes sense to purchase a service contract such as the Cars Protection Plus warranty when you consider all these reasons. That adds value to your used car when you finally decide to sell it off. Unlike another seller without an extended warranty, you will possess a strong selling advantage with a vehicle service contract like the protection plus.
Deals with surprise repair bills
This is particularly important for persons on strict budgets. As with all cars, repairs are inevitable. However, statistics indicate that used cars are twice more likely to need repairs within four months of regular usage. That can be problematic for someone on a budget, especially because used car repairs can spring a surprise on you. Moreover, the average American lives from one paycheck to the next, and such inconveniences can be problematic.
Without an emergency fund, you will be caught in a rut and will have to leave your car unattended for an extended period until you have cash. Fortunately, with a vehicle service contract, you get to eliminate that financial burden. Even when car repair works arise, you have convenient coverage to take care of the bill. Additionally, the cost of vehicle repair works increases, making a service contract an intelligent choice.
If you thought vehicle service contracts come at fixed rates, you thought wrong. These extended warranties are fully customizable. Therefore, upon purchase, you get to choose only the coverage you anticipate you’ll require. Although the downside to this is a waiting period, it is worth it. Another downside is that every coverage package has limitations and exclusions. This means not every car servicing and repairs are taken care of.
Regardless of the disadvantages that accompany used cars, the bigger picture still tells a positive story. Therefore, when you go in for a used car, choose one with a vehicle service contract. You will have value for money.