5 Interesting Things to Know about Extended Service Contracts
One of the big advantages of buying a new car is the warranty that comes with it. When a person drives an older car that’s no longer covered, the expenses to repair that car can really start to add up. After a breakdown or two, the driver could be looking at thousands of dollars’ worth of repairs. While new cars provide drivers with the coverage they want, those new car warranties don’t last forever. Your customers know this and might want some extra coverage so they can maintain the benefits of a new car warranty even after the manufacturer’s warranty has expired. That’s where an aftermarket service contract can help. Here are a few things to know about an extended service contract.
What Is an Extended Service Contract?
An extended service contract—also known by other names such as an aftermarket or vehicle service contract—is a warranty a customer can purchase to ensure that their car is covered after the manufacturer’s warranty has expired.
Both New and Used Cars Can Be Protected
If a customer buys a new car, the extended service contract will usually start immediately after the original warranty has expired. If they’re buying a used vehicle, the manufacturer’s warranty may have already expired. If so, the extended service contract will provide the coverage as if they were buying it new. It’s important to remember that the warranties provided by vehicle extended warranty companies aren’t identical to those that come with a new car, so you and your customers need to be aware of what’s covered and what isn’t.
They Can Be Customized
Vehicle service contracts can be tailored to meet the specific needs of the driver. If, for instance, the car is still covered by a powertrain warranty while the bumper-to-bumper coverage has run out, the extended warranty can be used to provide the customer with the bumper-to-bumper coverage they lack. There are other products and services available that one can take advantage of as well—24-hour roadside assistance, for example.
Consider How Often the Car Will Be Driven
Some drivers may never need an extended service contract. A person who’s addicted to the latest bells and whistles of new cars may not own a car long enough to lose coverage. Most drivers, however, prefer to keep driving their vehicle past the car payments and would benefit greatly by having their car under warranty at all times. As cars get older, the cost of repairs increases just as the manufacturer’s warranty expires. Vehicle service contracts protect your customers from this unfortunate reality.
The Paperwork Is Taken Care Of
Purchasing an extended service contract for a car may seem complicated, but it’s actually very easy. As a dealer, you can take care of the application and paperwork at the same time a car is sold, and your customers will appreciate the ease with which they can buy an extended service contract. Because the details of the warranty are taken care of between the warranty company and the dealer, the payments can be included in the car loan, adding to the convenience.
If you’re a dealer who’d like to offer your customers the benefits of a high-quality vehicle warranty plan, contact Freedom Warranty, LLC. We can offer protection for all makes and models of any age. Call us today at (877) 249-4186.