Finance 101-Common Repair Costs
Common and Major Repair Costs?
Vehicles are very complicated pieces of machinery with many, many moving parts. It is estimated that most of today's cars and trucks have somewhere around 2,000 individual parts. Many of these parts are very high tech systems or components including computers, monitors, digital components, and the like.
Below is an illustration of common repair costs as well as major component repair costs. Keep in mind, costs of repairs will continue to rise.
Vehicle Extended Service Contracts
(The Extended Warranty Jungle)?
Many people will own their vehicle far beyond the terms of the manufacturer's factory warranty. Without the protection and benefits offered by a Vehicle Extended Service Contract, vehicle owners may experience a costly mechanical breakdown. Not many people are prepared for the expense and being without their vehicle while the repairs are being performed.
With many Vehicle Extended Service Contracts, benefits will include a Rental Car, Towing to a repair facility, Overnight Expenses for meals and lodging if you are out of town, Emergency Roadside Assistance, Lock-Out Assistance, Battery Assistance and even Flat Tire Assistance.
Today's vehicles have many expensive items that can fail. Below is a list of repairs that are expensive in nature:
- Compact Disk Player
- Radio Assembly, Speaker System and Antenna
- Anti-Theft System
- Navigation System
- Rain Sensing Windshield Wiper System
- Convertible Top, Frame and Latches
- Air Bag Assemblies and Sensors
- Steering Wheel and Integrated Controls
- Emission Components (after the Federal Emission Warranty has expired)
- Heated Windshield
- Cruise Control System
- Remote Keyless Entry Systems
- Electronic Level Control System
- Torsion Bars, Coil Springs, and Leaf Springs
- Tire Pressure Monitor Sensors
- TV, DVD Systems
- Heated and Cooled Seating Elements
- All On-Board Computers, Sensors and Relays
- And much, much more?
There is some caution to be assumed by the purchaser of any Vehicle Extended Service Contract. Make sure that the insurance company that backs the contract is a reputable insurance company that has a top rating. You can also due diligence in making sure that this company has a proven track record of claims payment.
If you are worried about expensive repairs or about being without a vehicle while repairs are performed, then a Vehicle Extended Service Contract may be right for you.
"Should I buy a service agreement?" The simple answer is this: Let's say that you have a major repair that needs attention. It will require that the vehicle is in the repair shop for a week or so. The repair is an engine or transmission and will cost over $4,000 in total. Will being without your car for a week or having to pay for a rental car plus the $4,000 repair affect you, your family or your financial planning? If yes, then you should definitely look into the purchase a vehicle extended service contract.
Looking for Honda service or repair in the Centennial, CO area?
Visit the Kuni Honda Auto Service Center today!
Source: The Four Fatal Mistakes When Buying a Used Car, Author Herm Brocksmith