Rising above when market conditions get tough There is no shortage of data documenting rising delinquency rates, losses trending upward, and dropping collateral values. The near prime to subprime market has seen the worst performance and has been grabbing the headlines as of late. We have also seen reaction to current market conditions with some…
Vehicle Service Contracts help cover the cost of unexpected repairs, giving you piece-of-mind without the restrictions.
Most of us have been there: we purchase our shiny brand new car, excited about driving our slick new ride and about taking advantage of warranty-covered service. Then, after the warranty expires, usually after two years, we’re still paying our car payments and still enjoying the drive, but now all of a sudden we have to add the expense of repairs.
AAA recently conducted a study that led to an alarming statistic – 60 percent of Americans don’t have enough savings to cover a $500-$1,000 unexpected expense, such as new brakes or a radiator issue. What’s worse, the cost of maintenance is ever-increasing, so it’s becoming more difficult to keep up if you already had a tight budget.
As a deal-sweetener for both new and used models, some manufacturers offer an extended warranty at the time of purchase, which essentially broadens the scope of the original warranty, but are often expensive (sometimes deceptively expensive, i.e. tacked onto the ticket price of the car but marketed as ‘included’) and limit drivers to dealership-only service.
Vehicle Service Contracts – VSCs
Because vehicle service is increasingly expensive, and because more and more Americans are financially unprepared for such costs, Service Contracts are a great way to have the same piece-of-mind as a warranty, but without the restrictions.
In the name of preventing financial stress, rateGenius offers customers the option to include a variety of VSC plans to their refinance loans, based on their needs and budgets. The cost of these plans are spread out over the life of the loan, and can take effect after the end of a standard manufacturer warranty to prevent against a lapse in coverage.
8 Benefits of VSCs
- Coverage for every need and budget
- More affordable than out-of-pocket repairs
- No deductible
- Choice in dealership or mechanic
- Older models and higher mileage welcome
- Rental car reimbursement, roadside assistance, and towing included
- Preparedness for the unexpected
- Ability to spread out the cost over the life of your refinance loan