Should You Buy a Vehicle Service Contract?
Are Vehicle Service Contracts Worth It on Used Cars in 2025?
Save thousands on repairs • Full breakdown by brand and ownership year • Interactive charts included
Bottom line: A vehicle service contract can save the average driver $6,000–$18,000 over 5–10 years — especially on European luxury brands.
What Is a Vehicle Service Contract (VSC)?
A vehicle service contract (also called an extended warranty) is an optional protection plan that pays for mechanical and electrical repairs after the factory warranty expires.
How It Works – 4 Simple Steps
- Your car breaks down
- Take it to any licensed repair shop
- The shop calls your VSC provider for instant approval
- Provider pays the shop directly — you just pay your deductible (usually $0–$200)
Popular Coverage Levels
| Coverage Tier | What’s Covered | Avg. 5-Year Cost |
|---|---|---|
| Powertrain | Engine • Transmission • Drivetrain | $1,200 – $2,000 |
| Mid-Level | Above + AC • Brakes • Steering • Electrical | $1,800 – $2,800 |
| Exclusionary (Best) | Nearly everything except normal wear items | $2,500 – $4,000 |
7 Major Benefits of a VSC on a Used Car
- Massive Repair Savings – Average claim pays $1,800–$3,500
- Predictable Costs – No more surprise $5,000 bills
- 24/7 Roadside Assistance – Towing, flat tires, lockouts
- Rental Car Coverage – Up to $50/day while your car is repaired
- Trip Interruption – Hotel and meals if you break down 100+ miles from home
- Increases Resale Value – Transferable plans add $500–$1,500 when you sell
- Nationwide Repairs – Use any of 30,000+ certified shops
When Is a VSC Most Valuable? (By Ownership Year)
| Car Age | Avg. Annual Repair Cost | Typical 5-Year VSC Cost | Estimated Net Savings |
|---|---|---|---|
| 1–3 years | $500 – $900 | $1,200 – $1,800 | $1,500 – $4,000 |
| 4–7 years Sweet Spot | $1,400 – $2,800 | $1,800 – $2,800 | $6,000 – $12,000 |
| 8–12 years | $2,500 – $4,000+ | $2,500 – $3,800 | $8,000 – $18,000+ |
Which Brands Save the Most with a VSC?
Higher repair costs = bigger savings when you have coverage.
Biggest Winners (Highest Savings Potential)
| Rank | Make | 5–10 Yr Repair Costs | Est. Net Savings* |
|---|---|---|---|
| 1 | Land Rover | $15,000 | $9,500+ |
| 2 | Porsche | $10,000 | $6,500+ |
| 3 | Mercedes-Benz | $7,500 | $4,500+ |
| 4 | BMW | $7,000 | $4,200+ |
| 5 | Audi | $6,500 | $3,700+ |
Reliable Brands (Still Great Protection)
| Make | 5–10 Yr Repair Costs | Est. Net Savings* |
|---|---|---|
| Tesla | $3,000 | $400 – $1,200 |
| Toyota | $3,500 | $800 – $1,800 |
| Honda | $4,000 | $1,200 – $2,200 |
Real Owner Example
“My 2019 BMW needed a $9,400 timing chain repair at 78,000 miles. My $2,800 VSC covered everything except my $100 deductible. Best money I ever spent.”
— Michael T., Atlanta
Final Verdict: Should You Get a VSC?
YES — especially if you own or are buying:
• Any European luxury brand (BMW, Mercedes, Audi, Porsche, Land Rover)
• A used car 4+ years old
• A vehicle you plan to keep past 100,000 miles
Even on reliable brands like Toyota and Honda, the roadside assistance and rental car perks alone often justify the cost.
*Savings based on mid-tier VSC (~$2,500 over 5 years) with $100 deductible. Source: Consumer Reports 2025, AAA, major VSC providers.