Extended warranties, sometimes referred to as vehicle service contracts, can be a good investment for a bad credit car loan. If you find yourself facing vehicle repairs, an extended warranty could cover them so you don't have to shell out the money.
Do You Truly Need a Vehicle Service Contract?
Honestly, you may never have the opportunity to use the coverage offered by an extended warranty. This is especially true because today’s cars offer greater reliability than ever before. There’s still no guarantee, however, that a used vehicle is going to continue to perform flawlessly as the years go on.
Even though you may not need a service contract, it could still be worth it in case you do. It’s either that or potentially getting stuck with an expensive repair that you didn’t budget for. If the repair is costly enough that you can’t afford it, where does that leave you?
When Would an Extended Warranty Come in Handy?
Extended warranties come in handy when you run into expensive, unexpected repairs on a car you’re financing. This dealer product is typically offered when you finance a used vehicle, and covers repairs done at the dealership or an authorized service center.
With an extended warranty, you pay only the deductible (if there is one) for parts and labor charges out of pocket and the rest is covered. The cost of the service contract can often be rolled in your auto loan, so it only results in a small increase to your monthly payment.
One of the main things that an extended warranty can provide is peace of mind. Because service contracts can often be used at authorized locations across the country, they offer you the confidence knowing you can have your car worked on no matter where you travel.
A word of warning: not all extended warranties cover all issues. In fact, many of them come with built-in exclusions, so you have to make sure you know what is and isn’t covered in your contract.
Do I Have to Get an Extended Warranty When I Sign My Contract?
One great thing about extended warranties is that you don’t have to commit to one right away. If a service contract is offered through your dealer but you’re unsure, you can always shop around for a more affordable warranty program, or one with more coverage options, from an independent provider.
There are many reputable extended warranty providers available that want you to have the best peace of mind you can afford.
Need Too Much Work for Warranty Coverage?
If something has happened to your vehicle that requires more work than you can afford and isn’t covered by your service contract, it may be time to shop for another car. This can be hard to do when you’re feeling the strain of bad credit. There’s no need to fret, though, because Auto Credit Express wants to help.
We work with a nationwide network of special finance dealerships that have lenders available to help people who are struggling with credit issues. Even if you have bad credit, no credit, or bankruptcy on your credit reports, our experts want to help you get connected to a local dealer.
Save yourself the time and headache of driving all over town trying to find someone that can help you get an auto loan with your credit, and fill out our fast and free car loan request form today.
