8 Questions: Mike Swift & the Future of…
- August 14, 2017
Most everyone has health insurance to cover healthcare costs when they get sick. Most everyone has homeowner’s insurance to cover home repairs when disaster strikes. But what happens when your car or truck needs an expensive repair? If you have an extended warranty, you can save big bucks by having your repair covered.
An extended automotive repair warranty covers the costs of repairs and maintenance once the vehicle’s manufacturer warranty has expired. If an extended warranty is sold outside a new car dealership, it’s actually is called a vehicle service contract. A vehicle or auto service contract can be purchased at any time while you own the car. Newer cars and trucks will qualify for better service contracts as compared to older cars and trucks because their parts are less likely to break down.
Each extended warranty plan is different and coverage can be modified to fit your needs. A reputable automotive or vehicle service contract will be accepted by any ASE licensed technician. Plans usually cover the costs associated with vehicle repair including parts and labor, although some plans do require a deductible. Typically the technician who works on your vehicle contacts the claims center to report the claim before any repairs are made. The shop then works with the contract company to cover the payment.
There are several companies that offer these plans: Endurance Auto Warranty, Delta Auto Protect, CARCHEX, AA Auto Protection and Trustmark Warranty. These companies will give you a free quote and explain what type of coverage options they have. Some will automatically cover a wide variety of repairs, others will have several package options.
Many contracts also contain information about parts sourcing. Vehicle service contract companies (VSCs) source new, used and reconditioned parts. Parts are usually warrantied, even high-quality used parts, which are of like, kind and quality of the original part that came off your car. For example, if your engine on your 2010 Ford F150 goes out with 105,000 miles on it, the VSC will make sure they replace your engine with a similar Ford F150 engine that is in good condition and has less than 105,000 miles on it, so you are getting an engine that is the same or better as the one that came out of your car. This means many times VSCs will prefer a quality used part to a new part when making their repairs.
Quality used parts are a great alternative to new. They can easily be substituted for repairs and are the exact same part that is already on the vehicle. Plus, they’re cheaper. Opting to use recycled parts for repairs saves the company money, which can trickle down to the consumer. Using PartCycle to source these parts makes good economical sense. It has millions of high-quality parts that are searchable, and buyable, online at a fraction of the cost of new.
Depending on the coverage, and company, a vehicle protection plan usually costs about $1,800 for a year. Most companies will offer monthly payments. If an engine or transmission goes out on your vehicle, that repair can be more than $3,000, easily making up the cost of the plan. However, if your car is older and no major repairs are needed, sometimes you will spend more money on the coverage than the repairs would ever cost. Extended warranties, just like all other forms of insurance can be a bit of a gamble. When you need it, it pays off big. When you have it and never use it, it can seem like an unnecessary expense. But no one can know for sure if they will need it or not.
The biggest tip when looking at a vehicle repair contract is to always read your coverage. Ask if your plan covers the use of new, reconditioned or used parts. For most people and vehicles, it makes good sense to get a used part. If the car is anything other than brand new, a used part will make the most sense financially. It will also save your mechanic a lot of time when installing the part, because used parts often come with many extra little parts, getting you back on the road faster.
Used parts are always a great option for vehicle repairs. PartCycle has millions of used parts including engines, transmissions, headlights, tail lights and more in its online inventory. All of its parts come with a 6-month warranty and free shipping. All sellers on PartCycle have been checked for quality practices and been proven to be top in the industry, which means you can trust them to get you back on the road. Visit PartCycle before your next repair!