Benefits of a Vehicle Service Contract

Here at Bianchi Honda, we’re adamant about treating every vehicle purchase as an important investment for any customer. Whether you are shopping for a new Honda, a Certified Pre-Owned Honda, or a used vehicle, it may be worth your time to explore the benefits of vehicle service contracts.

What is a vehicle service contract?

All new vehicles come with standard coverage known as a “manufacturer’s warranty” to help mitigate the cost of parts and service during the first few years of ownership. This factory warranty, however, only lasts for a specific period of time or for a certain amount of mileage until it expires. It then becomes the responsibility of the owner to pay for any automotive service afterward. When purchasing a used vehicle, it’s not uncommon to learn its factory warranty has already expired. A vehicle service contract is designed to provide additional protection beyond the scope of the manufacturer’s warranty, and/or to provide standard coverage after the manufacturer’s warranty expires.

What are the benefits?

We believe it’s wise to consider a vehicle service contract to further protect your investment. You should, of course, assess factors such as your budget and driving habits before deciding if a service contract is right for you. With a variety of options to choose from, additional coverage can definitely help minimize future stress.

Confidence and Security
Automobile manufacturing and vehicle design has substantially improved over time. However, even with the latest advancements, vehicles simply don’t last forever! Aside from expected component lifespans, new parts that are produced as a result of the same advancements can prove to be more costly. A vehicle service contract is useful as a backup plan for any considerable service you may need, especially if you plan on owning a high-mileage vehicle. You deserve to drive your vehicle with peace of mind knowing you’re covered wherever you go.

Customizable Coverage
Factory warranties are wonderful to have but they are often limited by their generic approach rather than being tailored to an owner’s specific wants and needs. Luckily, we offer a range of comprehensive plans that can enhance your ownership experience. These options provide coverage for your vehicle’s engine, transmission, drivetrain, brakes, fuel systems, electrical systems, safety features, and more. We simplify the process by helping you learn what coverage is best for your vehicle so you can make an informed decision.

Lower Cost of Ownership
Let’s face it – owning a vehicle can be expensive, particularly when needing large or unexpected repairs. Utilizing a service contract will lessen, if not prevent, many out-of-pocket costs associated with these expenses. In fact, some repairs can easily cost thousands of dollars, so it’s likely your contract will have paid for itself in no time! This is notably true when purchasing a vehicle service contract upfront since it is cheaper than waiting to purchase one at a later time when your vehicle has aged or the manufacturer’s warranty has expired.

Higher Resale Value
While a vehicle service contract does improve the longevity of your vehicle, you may still choose to sell or trade in your vehicle before the contract expires. Having additional coverage will retain more of your vehicle’s value and help you get the most money possible out of it. Most vehicle service contracts are also transferable, which means potential buyers will find a vehicle with pre-existing coverage more attractive than a vehicle without.

Extra Perks
In addition to covering costs for parts and labor, many service contracts also provide supplementary benefits for customers. These can include roadside assistance, towing coverage, rental car allowance, hotel and food discounts, and several other bonus features. Not only does a vehicle service contract make it more convenient to take care of your vehicle, but it can also make your own life easier and more enjoyable!

Where can I take my vehicle for repairs?

You can visit any dealership, national chain, local mechanic, or licensed repair facility to perform the repairs on your vehicle with a vehicle service contract. You simply have to pay your deductible (if applicable) and the facility will contact the warranty’s claim administrator to arrange for payment.

What is a deductible?

A deductible is the amount you would have to pay before receiving coverage. Let’s say you have a deductible of $100 and a covered repair for your vehicle would cost a total of $500. You would have to pay the first $100 yourself and the remaining $400 for the repair is covered by your vehicle service contract. Depending on which contracts you purchase, some maintenance and repair services can be fully covered, meaning you would not have to pay a deductible at all.

Is buying a vehicle service contract worth it?

The short answer? Yes, it’s worth it.

We understand everyone has different needs and situations, and we don’t expect anyone to jump at the chance to spend more money when a vehicle purchase is significant enough as it is. However, buying a service contract is a sound decision if you are the type of buyer who is on a fixed budget, aims to protect their investment, and does not want to worry about expensive service down the line. Similar to other insurance policies or protection programs, vehicle service contracts can be personalized to your needs, and you can purchase them at any time throughout the life of your vehicle. Speak with our team of experts in the Finance Department today for more information!