The average brand new vehicle loses about half of its value during the first 3 years of ownership. When selecting your next vehicle, the choice to buy a used car instead of a new one can save you thousands of dollars in depreciation. One major sticking point preventing consumers from making the leap from buying new to used is the Manufacturer’s Warranty. Commonly referred to as a factory or “Bumper to Bumper” warranty; these warranties last about 3-5 years, are included in the cost of the vehicle and cover the vehicle’s first 30,000 to 50,000 miles. Choosing instead to purchase a used vehicle with a vehicle service contract can provide the reassurance needed to make this smart financial decision.
A service contract isn’t the same as a manufacturer’s warranty. It is a highly customizable plan designed specifically for you and your car or truck. Most people realize a used vehicle is not break proof. It is important to select a vehicle service contract that will allow you to maintain your budget during your time of ownership. The factory warranty issued with a new vehicle is a standard contract designed to cover components that the manufacturers know seldom break. There is virtually no financial risk to the insurer during the factory warranty coverage. A service contract, sometimes called an aftermarket warranty, is different in that you can target the items that generally experience issues on your type of vehicle. Buying a contract that covers common issues with your vehicle ensures you will have assistance when those parts experience a mechanical breakdown.
Another great feature of a good service contract is your ability to cover high mileage vehicles. CARS Protection Plus offers service contracts on vehicles with up to 200,000 miles for up to 48 months. These contracts stay with the vehicle and can even add value if you decide to sell the vehicle and transfer the contract to the new owner. Manufacturer’s warranties are generally limited to 100,000 miles and are not usually transferable.
When it’s time to purchase your next vehicle remember to save yourself some serious cash. Buy a vehicle that is a few years older with a service contract to provide peace of mind for years to come. To learn even more about the benefits of vehicle service contracts, take a moment to watch a few videos from CARS Protection Plus.