Should You Buy An Automotive Extended Service Contract? 
Article by Jerry Christopher

 The decision to purchase an extended service contract or 
mechanical break down policy as they are sometimes called 
is a decision that has many variables. Depending on the age 
of the vehicle, the usage, how long do you plan on keeping 
the vehicle for are just a few questions that need to be 
considered. 
 
If you look online, some of these so called guru’s who 
write scam pieces will tell you—Don’t Buy—it’s a scam. I 
whole heartily disagree with their opinions, I question if 
they have real world knowledge and experience to begin 
with. If they did, then I firmly believe their opinion 
would be other wise. 
 
The scam comes when you are charged outrageous and inflated 
prices for an extended service contract, they are not cheap 
to begin with, but those who exasperate the cost are the 
ones who are taking advantage of unsuspecting consumers. Or 
perhaps even requiring you to purchase as a condition of 
buying the vehicle, you should never be forced to buy under 
any circumstances. 
 
With automotive repair labor rates ranging easily up to 
$100.00 per hour or more, it doesn’t take a huge repair to 
cost you major bucks, and with the electronics and 
technologies of today’s automobiles, parts prices are 
equally as expensive. 
 
During my 26 years in the automotive service industry, I 
can recall countless and numerous times where customers 
wished that they had purchased, and those that did were 
glad they made such a sound financial decision. 
 
Consider the following examples of repair cost: 
 
Air Conditioner Repairs can easily cost $1500.00 for 
compressor replacements. 
Transmission Overhaul or Replacements--$3000.00 
Water Pump replacements--$600.00 
Power Steering Pumps and Steering Gears--$600-$2000.00 
 
However, don’t be mislead into believing a mechanical break 
down policy covers every nut and bolt on the vehicle, there 
are variables and different kinds of policies as well. Some 
cover seals and gaskets, wear and tear items, consequential 
damages etc and others don’t. Be aware of what it does and 
does not cover before buying, this will save you a lot of 
grief in the event you have a mechanical failure. 
 
It is a major decision, and one that requires weighing the 
advantages and disadvantages. 
 
My personal and professional opinion is that if you are 
going to use the vehicle on a daily basis, you plan on 
keeping for 2 years or more after the original factory 
warranty has expired, then you should purchase the extra 
protection. 
 
It is after all, like an insurance policy, you hope that 
you don’t have to use it, but it will give you some peace 
of mind in the event that you have to have an expensive 
repair. 
 
About the Author:  
Jerry Christopher-Owner http://www.usedcarwise.com 
Providing an innovative approach teaching consumers on How 
To Buy A Used Car The Smart Way. 
 
Jerry Christopher