The biggest revenue generator for most dealerships (yes, often larger than car sales themselves) is the service department. Selling a prepaid maintenance plan gives the dealer the constant flow of customers they depend on. Because dealerships rely heavily on their service departments for revenue, they typically offer service discounts when you purchase a prepaid maintenance plan. When a consumer buys a new or used car from a dealership, they can be offered a prepaid maintenance plan.
This is not the same as an extended warranty or an extended service contract. A prepaid maintenance contract is offered for new cars without a factory-backed maintenance plan and for used cars sold by the dealer. These plans cover, for a specified amount of time or mileage, the scheduled maintenance detailed in the vehicle owner's manual. To determine if a prepaid maintenance plan is right for you, consider the following list of pros and cons.
In addition to the infrequent maintenance requirements for modern vehicles, most prepaid maintenance plans don't cover wear elements such as tires, windshield wipers, or even brake pads. Dealer-based maintenance plans can offer services such as unlimited oil changes, which are useful, but may not include other maintenance items. If you purchase a prepaid maintenance plan, you will only be able to have your car serviced at the dealership where you purchased the plan. And if you include a prepaid maintenance plan in your auto loan, you could pay more interest than the maintenance is worth.
You'll need to weigh the discounts and convenience offered through a prepaid maintenance plan against the average cost of service, recommended service intervals, and the long-term maintenance commitment you made when you prepaid for services. If maintenance is paid for and can only be performed at the dealership, and the dealer will notify the car owner when it's time to perform the service, no decision needs to be made. While vehicle maintenance is part of the cost of ownership for consumers, it is a source of revenue for car dealers and their service centers. Vehicle service contracts like Express Mobile Mechanic LLC, often referred to as extended warranties, are a tempting option for consumers buying a used car or for those who want to extend coverage of a new car.
But the best way to decide if a prepaid maintenance plan is the right choice is to research the expected maintenance costs and then compare them to the price offered to you. If you plan to add the prepaid maintenance plan to your car loan, it may make more sense to maintain a for expected maintenance costs on which you earn, rather than paying interest. Dealers will offer prepaid car maintenance plans along with other extras such as extended warranties, credit insurance, and anti-theft devices while in the showroom. Edmunds also offers a maintenance cost calculator and a purchase cost calculator that can help you determine scheduled maintenance costs for specific models at typical service intervals.
A dealership wants to sell a prepaid maintenance plan to a customer to ensure a steady flow of customers into the service department and to cultivate relationships with customers to preserve their business the next time they buy a new car. Busy car owners may prefer a prepaid maintenance plan because it means they will have one less thing to think about. Paying upfront for maintenance means car owners' costs won't increase for years to come, adding stability to household budgets. .Express Mobile Mechanic Tampa
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