Blog Post by chrisoutsidefinancialcom - 10/07/2017 03:44:07am
Our bottom-line: Vehicle Service Contracts (VSCs), sometimes incorrectly referred to as extended warranties, can be worthwhile, if you know what you’re buying and you get one at the right price.
Expected Ownership Period (In Years)
Buying a car is just the beginning: we own our cars for years.
VSCs eliminate two big risks:
First, the risk of costly surprises. A 2017 AAA survey found that 64 million Americans can’t afford an unexpected repair bill of $600 without going into debt. Meanwhile, a new transmission can run up to $2,500. With a vehicle service contract, that cost is taken care of.
The right Vehicle Service Contract levels the playing field. VSC companies are experts, so we can leave the details, negotiations, and payments to them.
Another important benefit of Vehicle Service Contracts? The right VSC will let you choose where to repair your car. There are ~1,500 reputable, qualified auto repair shops in the U.S., but VSCs bought at the dealership will often steer you to repair at that dealership only.
So for the inevitable repairs – the noise won’t stop, the car won’t start – a VSC bought from ‘outside’ the dealership can be a great idea. If you buy a high-quality plan at a fair price, you can plan ahead – and pay ahead – for repairs, and repair where you choose.
Most VSCs were sold the wrong way: in the dealership’s back office, at inflated prices.
Only 9% of us have a high level of trust in car salespeople. Maybe that’s why so many of us would never buy any extras from the dealership.
VSCs are great products, trapped in a bad reputation, for good reason.
At Outside Financial, we offer a better way to buy a VSC.
We vet VSC providers carefully, and only offer products we’d buy ourselves.
‘Go Outside’ for a Better Car Loan, and a Smarter Way to Own.
To learn more about VSCs, visit our VSC page.
Other VSC Resources
Links to Our Learn Section on VSCs
Links to our FAQs about VSCs