Should You Buy An Automotive Extended Service Contract

The decision to purchase an extended serviceindustry, I can recall countless and numerous times
contract or mechanical break down policy as they arewhere customers wished that they had purchased,
sometimes called, is a decision that has manyand those that did were glad they made such a
variables. Depending on the age of the vehicle, thesound financial decision.
usage, how long do you plan on keeping the vehicleConsider the following examples of repair cost:
for are just a few questions that need to beAir Conditioner Repairs can easily cost $1500.00 for
considered.compressor replacements.
If you look online, some of these so called guru'sTransmission Overhaul or Replacements--$3000.00
who write scam pieces will tell you--Don't Buy--it's aWater Pump replacements--$600.00
scam. I whole heartily disagree with their opinions, IPower Steering Pumps and Steering
question if they have real world knowledge andGears--$600-$2000.00
experience to begin with. If they did, then I firmlyHowever, don't be mislead into believing a mechanical
believe their opinion would be other wise.break down policy covers every nut and bolt on the
The scam comes when you are charged outrageousvehicle, there are variables and different kinds of
and inflated prices for an extended service contract,policies as well. Some cover seals and gaskets, wear
they are not cheap to begin with, but those whoand tear items, consequential damages etc and
exasperate the cost are the ones who are takingothers don't. Be aware of what it does and does not
advantage of unsuspecting consumers. Or perhapscover before buying, this will save you a lot of grief
even requiring you to purchase as a condition ofin the event you have a mechanical failure.
buying the vehicle, you should never be forced toIt is a major decision, and one that requires weighing
buy under any circumstances.the advantages and disadvantages. My personal and
With automotive repair labor rates ranging easily upprofessional opinion is that if you are going to use
to $100.00 per hour or more, it doesn't take a hugethe vehicle on a daily basis, you plan on keeping for 2
repair to cost you major bucks, and with theyears or more after the original factory warranty has
electronics and technologies of today's automobiles,expired, then you should purchase the extra
parts prices are equally as expensive.protection.
During my 26 years in the automotive service