I found the article to be a good read for anyone considering a service contract.
Before anyone says they are a rip off or not worth it. Understand service contract prices for the most part are unregulated (except in Florida) so it’s not the service contract company ripping you off it is most likely the dealer.
I saw a $400 dealer cost contract come through at 11 grand the other day. Granted those are few and far between but it doesn’t surprise me when I see it.
Also claims processing varies greatly between companies and also how they deal with mods.
i love haveing the assurance that i can just bring the car to the dealer and be done with it. problem solved. ill pay an extra couple of bux to not have to worry about it 2 years from now.
Don’t mod your car unless you can push it off the cliff.
Most are a scam. I have a long story on the one I got with the S4, supposed to be a 3year/36K deal but they truncated it the first time I made a claim.
When i bought my celica, the credit union offered me a service contract through ‘the warranty group’. And it was the best investment i’ve made.
Cost me 1300$, for their ‘silver’ coverage (all mechanical and electrical parts minus shocks/rotors/brakes) for 48000 miles/48 months, and 100$ deductible.
total of 1/10 of what i paid for the car. So far has done a water pump replacement, 2 tows, 2 weeks worth of rental car, New c60 6 speed transmission, a new 2zz-ge engine, and new o2 sensors. all within the first year of ownership (bought it based on a carfax- turns out it wasnt as ‘taken care of’ as supposed to be). Always quick to cover anything, however with the engine they did have to inspect it but that only took 2 days. And because it’s not the dealers warranty, you get treated like their greatest customer because they get full credit for labor and parts. (Your welcome Basil Toyota in lockport!)
so my 1300$ investment has already given me back 8000$ worth of parts and labor.
i’d recommend it and will always buy one after this experience.
I have plenty of thoughts here. First, make absolutely sure, about 2-3 weeks after you’re sold your service contract, that it was paid for by the dealership you bought your car from. The reason I mention this is because my former employer was starting to pocket this money towards the very end, and quite a few of his customers got shafted as a result.
Second: About 10-15 years ago, I’d call an aftermarket warranty a scam, just a case of a dealer looking to make a few extra bucks. Now…with the price of service, repairs and parts, I find them to be almost a necessity, at least on a used car. Just make sure to do research, research, research on the company before considering it. I deal with at least a half-dozen of these companies on a regular basis, and not all aftermarket warranties are considered equal, IMO.
I have worked for a couple and have seen both customer and dealers get royally screwed (granted never by a company I worked for). Check to see who the company is insured by and avoid RRG.
I am just posting this as informational. I do not want to sell any service contracts on here.