Extended Service 101

Quickly learn the basics of extended service with these 6 true or false questions:

1. True or False: With an Extended Service Plan, I will never have to worry about servicing or maintaining my vehicle for the life of the policy.
Answer: False. No service plan exempts you from performing the routine maintenance and repairs necessary to keep your vehicle in good working condition. Regular oil/fluid changes, brakes, tires, and minor components all require regular service as outlined in the Owner's Manual or other parts and components will wear and break before their time.
Failure to properly maintain/service your vehicle may void coverage.
2. True or False: All Extended Service Plans are basically the same anyway so just buying the cheapest coverage is good enough.
Answer: False. Cheaper is not better when it comes to most extended warranties. Extended service plans come in all shapes and sizes and not all might be a match for your vehicle and needs.
3. True or False: The best place to buy coverage is from the dealer where I buy the car.
Answer: False. Companies that specialize in Extended Service Plans tend to offer the most complete, reliable, and competitively priced coverage when compared to most policies sold by car dealers.
4. True or False: I do not need Extended Service Plan because my vehicle is still covered under the manufacturer's warranty.
Answer: False. Yes, you may be covered under the manufacturer's warranty today but if you are planning to keep your vehicle beyond the manufacturer's warranty coverage you can save money in the long term: the sooner you extend your coverage, the newer your vehicle, the lower your rates will be.
Extended service plans also offers additional coverage and benefits beyond what's offered on your manufacturer's warranty.
5. True or False: When buying a new or used vehicle from the dealership, you must purchase an Extended Service Plan at the time of purchase or you won't qualify to receive financing.
Answer: False. Qualifying for credit is based upon the purchase price, your income, down payment/trade-in, and credit score - not your Extended Service Plan purchase. Be weary of the dealer that tells you otherwise.

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