Pre-paid car maintenance plans

Found on www.todaystmj4.com/ and brought to you by Car Repair Salinas

By Susan Kim

CREATED Sep. 14, 2011

 

It's a question you may be asked the next time you buy a car: 'Do you want a pre-paid maintenance plan?'

Here's how it works. You drive into your dealer or repair shop, the work is done, and the goal is to have a quick exit back on the road. Denise Karl thought it sounded like a great idea.

"I thought the idea of a pre-paid maintenance plan, where Ididn't have to worry whether or not I had money on my credit card, would be a great idea," Denise says.

Denise bought a pre-paid plan for two different cars. Her first plan cost $1500 bucks, and was added to the cost of her lease, allowing her to spread out the expense. The plan saved her about $600 on maintenance.

 

"It definitely was a money saver to have it pre-paid," Denise recalls.

But when she got a new car and bought a second plan for $800, she didn't realize it only covered oil changes, and was shocked when she was charged for other maintenance.

"I was very disappointed," Denise admits.

The plans are a hot item for dealers to offer at closing, but Rodney Davis with the Better Business Bureau warns don't let the pressure pursuade you.

"These kinds of plans are relatively new, so we've received about 100 over the past couple of years, we've certainly seen an uptick in the numbers," Davis says.

Some of the BBB complaints include people claiming maintenance plans were added to their closing paperwork without their approval, and they dropped off their cars off for maintenance, but the work wasn't done.

However, there can be benefits if you do your homework and pick the right program. Be sure to check out the business you're considering buying a plan from to see if it has complaints on file with the BBB.

Some high end car makers include a free maintenance plan in the purchase price. If you plan on moving or selling your car before the plan is up--make sure it's transferrable.