When you come to buy a car, a dealer may tell you that there are numerous optional extras that you can sign up for. One of those is the vehicle service contract. Dealers don’t actually offer those directly, but rather they go through administrators like Accelerated Service International (ASI). You are under no obligation to take out this coverage, nor do you have to go through the administrator that your dealer suggests. For instance, if your dealer does not offer ASI service coverage, you could decide to go through them yourself. The big question is, however, whether you need this type of contract at all.

Factors to Consider Before Signing a Vehicle Service Contract

The first step of the process is to decide whether you need such a contract at all. If your car is brand new and still under warranty, then you do not need the contract. If the vehicle is used, it may still have a service contract attached to it. You generally have to purchase these contracts and pay for them in full, so it is possible that the previous owner still had one.

Another important element is the cost comparison. If you have a vehicle that is known to regularly break down, then you may want to consider such a contract. That said, the administrator will be aware of this as well, which means that the price of your contract is likely to be higher. Alternatively, if you have a vehicle with very expensive parts, then you may want to consider it as well. At the end of the day, only you can decide whether you expect to spend less on repairs, or less on the contract.

If you have decided that you do need this type of contract, you will need to choose the right administrator. Generally, a dealer will be associated with a company like ASI. ASI is very well-known, has been in business for many years, and has a solid reputation. This is one that you can comfortably sign up with, in other words. That being said, you should still do your own research, particularly if the administrator is someone other than ASI.

Benefits of a Vehicle Service Contract

No matter how you look at it, a vehicle service contract is an added expense, so you really need to think about whether or not you need one. After all, most of us aren’t made of money. However, it does offer a number of key benefits, including:

  • The fact that, should something go wrong with your vehicle, you will know you’re covered.
  • The fact that your car will always be repaired with manufacturer-approved parts by licensed professionals.
  • The fact that your car will always be in good condition, as early signs of wear and tear will be spotted.
  • The fact that your car could be worth more if you come to sell it and the contract hasn’t expired yet.

The benefits, as you can see, are significant and it is no surprise that most dealers recommend them.