The sluggish economy is forcing consumers to try to better control their budgets, to minimize large expenses, and to reduce financial risks. Many Americans are only one paycheck, one rent payment, or one car payment, away from financial ruin.
The luxury of the choice to buy a new car has disappeared for many, as the record losses of the auto manufacturers indicate. But that doesn’t mean that people are no longer driving. It means that people are keeping their current vehicles longer, rather than getting new ones.
However, there is a silent risk for people who will keep their current car: That of a major, unexpected failure, requiring an expensive repair. Some vulnerable people are only one major repair away from financial collapse, and don’t even recognize the danger. A $600 repair for a broken power window may be safely postponed. But a $2500 transmission repair cannot be ignored, because the vehicle may not be drivable. The problem is compounded in that, without a vehicle to drive to work, there is no income to pay to repair the car. Having a functioning vehicle is not just a convenience in modern life, it’s a necessity.
For such people, there is a way to eliminate that risk, and to truly control their budget: Obtaining a vehicle service contract (VSC), popularly known as an extended warranty. By getting a VSC, consumers can proactively control their expenses for a major tool they use every day, their car.
With a quality VSC, consumers are protected against unexpected vehicle repairs, even the smallest of which can cost upwards of $500. Plans are available for most vehicle for terms generally ranging from two to seven years, with prices between $1300-2800 for comprehensive coverage. Those prices can almost always be paid monthly. An expected $80-150 per month warranty payment is much easier to budget for than a surprise $3000 engine repair, which takes the vehicle out of commission.
With a vehicle service contract, consumers can help their lives become a little more predictable, and can help make sure that their vehicle is ready when it is needed.
