Vehicle Service Agreement

Vehicle Service Agreement provide drivers with peace of mind and financial security from repair costs after their vehicles’ original warranties expire. For Texas auto consumers buying a new or used vehicle, passing up an Vehicle Service Agreement may be a lost opportunity to save hundreds on repair costs. 

No matter what vehicle you purchase from El Paso Kia dealerships or other new or used car dealers in the Lone Star State, sooner or later that vehicle will have repair needs. An Vehicle Service Agreement helps shield you from the cost of potentially expensive repairs as your vehicle ages. For auto consumers who intend to keep their vehicles for many years, an Vehicle Service Agreement is the smart move.

Today’s car buyer on average keeps his or her car about 10 years. Vehicle lifespans have improved greatly in the last few decades as a penny-pinching public chastened by the Great Recession has come to demand greater dependability and reliability from vehicles as technology has improved. It’s not unusual to see vehicles with more than 200,000 miles on the odometer on the road, running smoothly with few problems.

Although vehicle life has improved, older vehicles will still have repair needs. Brakes, starters, alternators, and more will have to be replaced in even the most reliable cars, trucks, and SUVs. An Vehicle Service Agreement can help ease the sting of repairs and help car owners hold on to their vehicles for a few more years. Kia dealers and other car dealers typically sell Vehicle Service Agreement at their lots for new and pre-owned vehicles.

What is an Vehicle Service Agreement?

An Vehicle Service Agreement is essentially a service contract that covers the cost of specified repairs once the term of a vehicle’s standard warranty expires. New vehicles typically come with warranties, which will cover the cost of specified repairs during the duration of the warranty – usually a period of a certain number of years or up to a certain mileage. After the warranty expires, car owners must cover the cost of repairs on their own unless they purchase an Vehicle Service Agreement.

If you’re buying a used car, the vehicle’s original warranty may still be in effect, depending on how old the vehicle is or how many miles are on the odometer. Many pre-owned vehicle buyers choose to supplement the remaining coverage on their vehicle’s standard warranty with an Vehicle Service Agreement.

Do I Need an Vehicle Service Agreement?

Auto consumers weighing whether an Vehicle Service Agreement is right for them should ask themselves the following questions:

• Am I buying a new vehicle? What is the length of my new vehicle’s warranty? – New vehicles come with warranties. These warranties will vary in length and coverage, depending on the automaker and, occasionally, the dealership you’re buying from. In some cases, a new vehicle warranty will cover your vehicle for as long as you intend to own it.
• Is there a warranty on a used vehicle I intend to buy? – Some newer used cars will still have a few years or a few thousand miles left on their original warranty. When purchasing a pre-owned vehicle, buyers should determine if the warranty is transferrable and how many miles or years it will remain in effect. If the vehicle only has a little warranty or no warranty left, it may be wise to purchase an Vehicle Service Agreement, particularly if you intend on keeping the vehicle for a while.
• How reliable is the vehicle I’m purchasing? – Some vehicles hold up better over time than others. When purchasing a new vehicle, look at product reviews for previous years of the same model to see how reliable it is and whether the model has problems likely to need repairs. When purchasing a used car, check reviews of the vehicle for information about their long-term durability. If you’re buying a model with a reputation for electric window problems, a finicky transmission, or other flaws, it may be worthwhile to purchase Vehicle Service Agreement coverage.
• How long do you intend to keep the car? – If you’re buying a new car and only intend to keep it for a few years before trading it in for another, an Vehicle Service Agreement may not be for you. If you’re buying a new vehicle and intend to keep it for more than five years, buying an Vehicle Service Agreement may be a worthwhile investment.
• Who backs the warranty? – Vehicle Service Agreement typically are offered by either the manufacturer or a third-party. Manufacturer backed warranties help pay for repairs at franchised dealerships. Third-party warranties are provided by other companies and may require the owner of the warranty to take the vehicle to certain repair shops and to pay for the repairs upfront before submitting a bill to the company for reimbursement.
• Does the warranty have a deductible? – Some Vehicle Service Agreement require owners to pay a deductible before repairs are made, while others have no deductible. When shopping for an Vehicle Service Agreement, find out how much of a deductible the warranty you are considering will have. It’s a good idea to avoid warranties with per-repair deductibles, as they can quickly add up if your vehicle requires multiple repairs.
• What does the warranty cover? – When purchasing a warranty, make sure it’s useful. Be sure that your warranty covers expensive repairs (engine and transmission troubles) and items likely to wear out (brakes, electrical systems, etc.).
• Reimbursement? – When buying an Vehicle Service Agreement for your vehicle, be sure to find out if the warranty provider pays for repairs up front or if you have to pay and then submit a bill for reimbursement. This will help you better prepare financially for repairs.

Even with that strong warranty, Kia buyers who want long term peace of mind should consider an Vehicle Service Agreement. For Texas car buyers looking for a Kia dealership offering strong Vehicle Service Agreement visit Casa Kia in El Paso. A respected Kia dealer, Casa Kia staff will help you select a quality new or used vehicle and provide you with the information you need to make an informed decision concerning an Vehicle Service Agreement.

Sources:

http://www.forbes.com/sites/jimgorzelany/2013/03/14/cars-that-can-last-for-250000-miles/

http://www.autotrader.com/research/article/car-shopping/199185/do-you-need-an-extended-warranty.jsp

http://www.consumerreports.org/cro/news/2013/07/is-it-worth-buying-an-extended-car-warranty/index.htm