Understanding Vehicle Service Contracts

Factory warranties offer peace of mind for car buyers, but how can you extend that peace of mind for a vehicle that’s warranty has expired? Vehicle Service Contracts are the perfect solution. Consider these contracts as an extension of your factory warranty, prolonging the same assurance for major mechanical issues, beyond your standard warranty. Not only do you get more confidence on the road, but you’ll also save on expensive repairs which could otherwise catch you off-guard.

What are vehicle service contracts?

Think of vehicle service contracts like health insurance for your vehicle. While most factory warranties last at least three years, many drivers keep their vehicles well beyond 150,000 miles. Vehicle service contracts cover expensive repairs included under the service contract coverage when your factory warranty expires.

What do they cover?

Coverage varies from plan to plan and can be more or less extensive, depending on a number of factors. However, most vehicle service contracts cover things like:

• Engine
• Transmission
• Steering Components
• A/C Systems
• Brakes
• Electrical Components
• Suspension
• Fuel Systems

What's the average cost?

While this also depends on a number of factors, vehicle service contracts typically cost between $350 and $700 per year, with a total cost somewhere between $2,000 and $4,000. When you think of the cost to replace an engine or transmission, this can really save you money on repairs. It's important to evaluate if a vehicle service contract would make financial sense for your vehicle and situation.

Don’t be caught off-guard by major repairs. The best way to prevent expensive repairs is to keep up with your regularly scheduled maintenance and don't ignore issues when they arise. If you want to learn more about vehicle service contracts or keeping your vehicle reliable, contact the Hall Honda Virginia Beach service team today.