Auto Repair Payment Plan: What is it & Why Do You Need One
It might not be what you think it is.
Who doesn’t want an easier way to pay for vehicle repairs? What about an auto repair payment plan? What exactly is it? Let’s find out.
Not After the Fact
A lot of people might think that an auto repair payment plan can be bought after you have a mechanical problem. But unless you charge the repairs to a credit card, you’re probably going to have to pay in full, no matter how large the bill.
Paying a large car repair with a credit card isn’t such a good idea since the high interest will hurt you later.
Waiting to figure your finances out after the fact isn’t a good option. Instead, you need an auto repair payment plan to protect you if anything goes wrong.
It’s Before the Fact
Auto repair payment plans are better known as extended vehicle warranty plans or service contracts. These are protection plans you purchase before you have a breakdown, sort of like insurance. If something happens, the plan goes into action. No matter how big the repair bill, covered repairs are paid for 100% minus any deductible.
Your car repair payment plan can include:
- Bumper-to-Bumper Coverage
- Powertrain Warranty
- Technology Package
- High-Mileage Option
Whether you have a new or pre-owned vehicle, an auto repair payment plan is right for you.
Payment Plans Do Exist
Now for the largest repairs, you might be able to get the repair shop to finance the job. Then again, you might not. You could also take out a home equity loan for the repairs, but do you really want a second mortgage on your home?
Even those other methods might work, having one of the extended car warranty plans takes the pressure off. Instead of having to scramble around looking for a loan, you know your repairs are covered.
You just need to:
- Drop the vehicle off at your mechanic of choice.
- Have the mechanic make the repairs.
- Submit the bill to the warranty company.
Both have a cost, but the extended warranty gives you peace of mind. Plus, it gets your car back on the road faster.
Plans for New and Pre-Owned Vehicles
If you’ve just driven your new vehicle off the lot, repairs are probably the furthest thing from your mind. After all, you have the manufacturer’s warranty, and that will protect you, right?
It doesn’t provide as much protection as you might think.
Manufacturer warranties are typically limited in scope. For example, you might be fully protected with your powertrain warranty, but your bumper-to-bumper coverage isn’t sufficient. You can get an auto repair payment plan to protect against the cost of those repairs.
What if you’re diving an older, high-mileage vehicle? The manufacturer’s warranty has already lapsed, and you might think you aren’t eligible to get an auto repair with a payment plan. Fortunately, you are also eligible for an auto repair payment plan for pre-owned vehicles.
These plans cover:
- New Vehicles
- Pre-Owned Vehicles
- High-Mileage Vehicles
- Luxury Vehicles
No matter what you drive, you can get a warranty that provides auto repair with a payment plan.