Insurance

Are Vehicle Warranties and Prepaid Maintenance Plans Worth It?

Don’t allow the excitement of buying a new car to convince you into purchasing a prepaid maintenance contract.
Are Vehicle Warranties and Prepaid Maintenance Plans Worth It?
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Anne Johnson
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You’re purchasing your new vehicle, and the finance and insurance (F&I) manager is offering you various add-ons that you can buy. One of them is a maintenance plan. Should you take it? Or you’re sitting in your living room watching TV, and an advertisement for a vehicle warranty company comes on. Is it a good deal?

You’re inundated with various offers, and whether to choose one or even which one to choose can be challenging. There are pros and cons to both.

Prepaid Maintenance Plans

The F&I manager presents prepaid maintenance plans to buyers while the final paperwork is being signed. They make a convincing argument as to why you should purchase one, to protect your car and wallet.
Anne Johnson
Anne Johnson
Author
Anne Johnson was a commercial property and casualty insurance agent for nine years. She was also licensed in health and life insurance. She went on to own an advertising agency, where she worked with businesses. She has been writing about personal finance for 10 years.