Which extended warranty or service contract is right for you?
A service contract is not a warranty, although many times they are called extended warranties. I will refer to them as a service contract. The reason people purchase these types of contracts is fear. Let’s face it a catastrophic failure on your car can cost big money. Transmissions, electronic control systems, computer-controlled everything, late model suspension systems are all very high-tech, (that’s Greek for expensive.) So a service contract transfers risk from the vehicle owner to the contract company, this is basically an insurance policy. You’re betting the repairs of the vehicle will exceed the contract cost. The contract company is betting the repairs won’t, that’s how they make money after all. What do I tell my customers when they…