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What Exactly Does a Vehicle Service Contract Cover in Used Cars?

Vehicle Service Contracts commonly go by the name extended warranties and they kick in when manufacturer-provided warranties have run out their age or miles limit in cars. When you buy used cars in Fountain Inn, Fountain Inn, SC, most dealerships will offer you a vehicle service contract that mimics a manufacturer-provided warranty. It may cost you anywhere between $700-$2000 per year depending on the make and model of your used car, the span of the contract, the provider, and more. There are few things that a typical vehicle service contract cover in used cars and there are a few things that they don’t. Before signing anywhere, you need to know exactly what all are covered.

Breakdown vs. wear and tear

When it comes to used cars in Laurens, Fountain Inn, SC, or anywhere, as a matter of fact, a vehicle service contract will differentiate its coverage terms on grounds of breakdown and wear and tear. Most contracts only cover complete breakdown repairs as the providers expect used cars to have more wear and tear damages. However, there are a few service providers who are willing to cover both but the cost of such vehicle service contracts is generally high. Hence, before buying any contract for your used car, you need to read the fine print to understand which specific car parts are covered and what type of damages will the service providers pay for.


Have you ever cashed in an auto insurance plan? If not, you have surely bought one. You have naturally come across plans with $500 or $1,000 deductibles where the deal is that you pay the first $500 or $1,000 during a repair before the insurance can kick in. With vehicle service contracts as well, there is the concept of deductibles. And the higher the deductible you choose to pay, the lesser will your contract cost. This is naturally an important point to consider when you buy used cars in Fountain Inn, Fountain Inn, SC. Depending on the deductibles, the service providers plan the coverage, which decides the ultimate benefits you get.

Broader car issues and type of payment

Take the example of overheating. Most vehicle service contracts do not cover the issue. Even if the source is a part that is covered under the contract, you may or may not get coverage on the same. The contract provider will cite the fine print where overheating is not covered and you can always sue to take them to court but you will want to be vigilant before purchasing the vehicle service contract rather than going through the hassle. Additionally, most contracts require you to pay the repair costs first and then they reimburse you the full amount on a later date. That reimbursement may come months later which may not help your current finances in any way.

A better alternative to paid vehicle service contracts

At Family Auto of Fountain Inn, you get a flat 2 years/36,000 miles warranty and it comes in the package of buying a used car from dealership. No additional vehicle service contracts, no extra upfront or monthly payments. This naturally makes Family Auto the best place to buy used cars in Fountain Inn, SC as paying for vehicle service contracts may not be a wise decision. Given that manufacturers are making more reliable cars that see fewer repairs, you might not have to make repairs worth $1,500 (average cost of a vehicle service contract) in 2 years. The upfront payment only brings you peace of mind. The return of that investment does not match up to the coverage offered. It is always better to buy from a dealership where the used car warranty comes free.


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