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Extended Service Contract – To Buy or Not to Buy?

Whenever a new car is purchased, buyer has to make many crucial decisions, regarding the make and model of the car. Apart from these things there is one more thing that plays a vital role at the time of purchasing car, it is the service contract. This is especially relevant for those buying a used car.

Service contract of car makes sure that the buyer does not spend extra amount on the servicing of car. All car companies offer service contract with a new car for a period of 1-3 years. Duration of the contract varies according to the offer provided by the company. Buyers can avail this first time contract without paying any extra amount. Now days many different offers and schemes are provided by companies, one such offer is an extended service contract. These days, extended service contract is also being provided with used cars. By paying extra money, buyers of used cars can earn relief from the future maintenance cost of the car.

Benefits of extended service contract

Though customer has to spend little extra money for getting an extended service guarantee by company, this may be a wise decision in case of those cars that carry high maintenance cost (let’s say BMW car, as BMW service is expensive). At the time of purchasing the car, owner has to spend few extra grand in taking this extended service guarantee which is remarkably inexpensive in comparison to the amount he may have to spend on service of the car if he does not have any extended service cover. Few notable things about extended service contract are as follows

  • Under an extended service contract, company agrees to pay repairing expenses covered by the contract for a pre-decided time span.
  • Extended service agreement does not include tires and light bulbs apart from these things everything else is covered including changing of oil.
  • Some extended service contracts do not include TSB (Technical Service Bulletin).

Why extended service contract may not be necessary?

However, buying extended service contract may not be necessary in all situations. You need to keep in mind is the purchasing cost and maintenance cost of the car when making a decision. There is no point in paying extra amount in respect of service contract for those cars that are extremely cheap and do not require costly service. Another factor that a buyer should consider is service fault record of car. He should make sure that the car has a good service fault record if he decides not to spend on extended service contract. Hence, buyers should do enough research before buying the car to determine if the car requires additional service contract or not because in many cases, existing service contract is enough to get through the life of the car.

If the buyer of used and new cars keep these things in mind and search about it on the internet, he can confirm as to whether it makes sense to buy extended service contract.

However, buyers of used BMW cars are advised to look upon the advantages of extended service contract as the BMW service is expensive and used cars are expected to demand maintenance frequently.  

Views: 116

Tags: Automobile, BMW, Benefits, Contract, Service, cars, contract, extended, of, service, More…used


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