Protect Your Wallet With a Vehicle Service Contract
If you’ve owned cars for a while, does it seem like something always goes wrong with your vehicle the moment you get it paid off? It can be scary when that manufacturer’s warranty ends. How do you prepare for unexpected expenses?
Make sure you’re covered down the road
There’s a way to lessen that worry. It’s called a Vehicle Service Contract, or VSC.
A Vehicle Service Contract is a protection plan that pays to repair or replace covered parts on top of the manufacturer’s warranty in the event of a mechanical breakdown. This means that if your car breaks down or needs repairs, you can have peace of mind knowing that you won't be hit with unexpected costs.
So, why should you consider a Vehicle Service Contract? Here are a few reasons:
Protection against surprise repair costs
No matter what phase of life you’re in, if your car breaks down or needs repairs, it can be a major financial burden. With a VSC, depending on the coverage you choose, your contract may cover repair or replacement of parts on everything from engine and transmission repairs to electrical and suspension issues.
Customizable coverage options
Not all VSCs are created equal. You can choose the coverage options that work best for you and your car. For example, if you have an older car that's not under warranty, you may want to choose a contract that covers more repairs. If you have a newer car with a manufacturer's warranty, you may only need a contract that covers certain repairs that aren't covered by the warranty.
With many VSCs, you can choose the length of your agreement. Your price is based on the option you choose:
12 months/12,000 miles
48 months/48,000 miles
60 months/60,000 miles
And depending on your state, you can include the VSC as part of your vehicle loan contract, so it’s part of your regular monthly payment.
Transferrable coverage
With most VSCs, plans stay with the vehicle (unless canceled). If you decide to sell your car, you can transfer your vehicle service contract to the new owner. This can be a great selling point for potential buyers and may help you get more money for your car.
When considering a vehicle service contract, it's important to read the fine print and understand the terms and conditions. Make sure you know which parts are covered and what's excluded. You should also be aware of any deductibles or out-of-pocket expenses you may be responsible for.
If you’re a lease customer and have been thinking you might want to finance the vehicle you already like, or if you currently have a loan with another company and have been thinking you might be able to get better terms or a lower rate, you can apply to refinance your loan online or buy out your lease with ModeSM by GM Financial.
When applying for financing through Mode, you can opt to purchase a VSC plan at the same time, and, depending on your state, it can be added right into your monthly payment. In addition to a comprehensive plan,1 the Mode VSC plan includes extra benefits like:
Towing
Car rental
Trip interruption if you have a breakdown while you’re cruisin’
Whether you’re a lease customer looking to finance the purchase of your lease or have a vehicle loan other than with GM Financial and are considering refinancing, visit getmode.com and see if owning, with the protection of a Mode VSC plan, makes financial sense for you.
1See sample contract for terms, conditions, coverages and exclusions. Your actual contract may differ slightly based on state requirements.
By Taylor Provost, GM Financial