GM Maintenance Plan (Service Contract)
I recently purchased a 2014 Chevrolet Silverado 2500 with the Duramax. As part of the sales pitch they offered an extended maintenance plan that covered all service related items such as diesel exhau...
Forum Discussion
mich800 wrote:waynec1957 wrote:astraelraen wrote:
If you are financing you will be paying interest on this prepaid service contract. Why prepay for service AND pay additional interest on top of that?
For the same reason I have insurance on the truck and camper. That's prepaying for an accident that may not happen and it'll costs a whole lot more than $2k over the same timeframe.
The difference is insurance you are protecting from an unknown event of unknown cost. With the maintenance contract he should be able to get a pretty good idea what his out of pocket expenses will be and compare to the contract price. If the discount is big enough go ahead and purchase it. But only the buyer can determine how big of a discount if fair for them.
I sort of got off topic.I find the older I get, the more I tend to babble. I was talking about the extended warranty, not the maintenance plan. But, $2k upfront could save several thousand on the back end if something serious goes wrong. That was the comparison to insurance.
