“Extended warranty” can be a confusing term, but actually refers to a service contract.
A true warranty comes from the manufacturer WITH the purchase of your car, while an “extended warranty” or service contract is an extra protection that you can purchase for your vehicle that extends beyond the manufacturer warranty.
Service Contracts are like health insurance for your car. They can be worked into your financing, so that you pay a small amount monthly to avoid costly repair and maintenance expenses down the road. A service contract will cover certain repairs for your vehicle during a specified coverage period.
Watch this short video from the Proctor Dealerships to learn the basics of vehicle service contracts. OR keep reading below as we answer some FAQs regarding service contracts.
A vehicle service contract is not required when purchasing a car, and it is not required to get financing for your purchase.
Deciding whether or not to purchase a service contract for your new vehicle is a personal desicion.
While we can’t tell you whether or not a service contract is right for you, we can provide you with information to help you make an informed decision. Read the pros and cons below and call our finance & insurance department to learn specifics about our available service contracts and what they cover (850) 702-5760.
What types of repairs are (and aren’t) covered in the vehicle service contract? A stated component coverage contract will list what IS covered. An exclusionary contract will list what ISN’T covered. Either way, it is important to make sure the contract meets your needs and gives you peace of mind.
What is the deductible? Is the deductible per occurance, per repair, or per visit? If you are having several repairs completed during one visit, it is important to know whether you will pay for each repair or just the single visit.
What responsibilities do you have to maintain the car? Many service contracts require that you keep up with routine vehicle maintenance, such as oil changes, in order to be eligible for coverage.
Do you put so many miles on your vehicle that you will exceed the manufacturer warranty quickly?
Will you be anxious about repairs when your car is no longer covered by the manufacturer warranty?
Do you have an emergency savings fund in the event of unforeseen auto repairs when the vehicle is out of warranty?
How long do you plan on driving this vehicle? Will you trade it in after a few years, or do you plan on keeping it for 6+ years?
If you decide to sell your vehicle in the middle of your service contract, the good news is that the investment will not be wasted!
If you decide to sell your vehicle privately, the vehicle service contract will add value to your car and can be transferred to the new owner. Transferring is simple and affordable, typically costing less than $35.
If you decide to sell or trade your car at the dealership, your vehicle service contract will be cancelled, prorated, and reimbursed. The reimbursement can be accepted as cash or can be used as a downpayment on a new vehicle.
Did you know that you can trade in an old vehicle and buy or lease a new vehicle directly through our website?
Bypass the showroom and save time by shopping our inventory online. Once you find the perfect vehicle, you can add protections such as Vehicle Service Contracts or Zurich Protection Packages directly through our website. Customize your payments, then schedule vehicle pickup or complimentary delivery!