When Buying an Extended Service Contract Makes Sense

Extended service contracts are meant to pay for the costs of covered repairs (sometimes including basic maintenance). They cover many of the things a regular factory warranty would cover, but they extend those benefits beyond the date when the original warranty expires.

An extended service contract (sometimes called an extended warranty) can be a wise financial choice that gives you the peace of mind knowing you'll be covered for unexpected repairs. However, its value depends on several factors, including the condition of the car, whether the factory warranty is still in effect, and how long you expect to keep the car.

Before deciding to purchase an extended service contract, consider these questions first:

Is Your Car Already under Warranty?

If you're buying new, then chances are your car or truck comes with a factory warranty that covers repairs (and sometimes maintenance) for a certain number of miles or years. If you're buying used, then the original warranty may transfer to you if it hasn't expired already.

You want to be sure that the original warranty and an extended service contract don't overlap. Also, if you don't think the original warranty doesn't cover all your needs, then an extended service contact can be a good way to fill the gaps of coverage.

How Long Do You Plan on Keeping the Vehicle?

Extended service contracts only make sense if you plan on keeping the car for a long time (or at least for the entire time-frame covered in the contact). If your car already has a factory warranty, and you only plan on drive it for two or three years, then you probably don't need an extended service contract. But if you do plan on driving the car indefinitely, then the extended warranty be a good value.

What Shape is the Car In, and How Reliable Is the Model?

When buying a used car, you should always take into consideration what condition it is in. You should strongly consider buying a used car that is "certified pre-owned," meaning it's gone under a rigorous inspection and receives the "seal of approval."

To get the best value out of an extended service contract, you want the car to run as long as possible. If you find that the car has a history of being unreliable at higher mileages, then you might want to avoid buying an extended service contract (and perhaps not even buying the used car at all).

What is covered in the Extended Service Contract?

The covered repairs and services are different for every extended service contract. Does the coverage include repairs for regular "wear and tear?" If not, what repairs does it cover?

The contract should provide all the details about what is and isn't covered. You may also want to find out whether it requires a deductible for each repair or each visit ("per repair" deductibles tend to add up quicker).

The Longer Your Car Runs, the Better its Value

The main benefit of an extended service contract is the peace of mind that comes with knowing you won't be on the line for certain unexpected repairs. With the guaranteed repairs and maintenance of an extended service contract, you can be fairly certain that your car will have a better chance of lasting a long time into the future.

If you're looking for new or used cars for sale in Utah, Ed Kenley Ford offers several options for certified pre-owned and extended service contracts. We serve the communities of Layton, Ogden, Salt Lake City, and the surrounding areas.

Learn more about our Pro Certified Lifetime Warranty, available for all our new Ford Trucks and Cars, as well as many cars and trucks in our pre-owned inventory.