Should i buy prepaid maintenance

Not a member? Need further assistance? Please call Member Services at Key tips to consider before buying a plan for your new or used car. By Mike Monticello. December 27, Sharing is Nice Yes, send me a copy of this email. Send We respect your privacy. Oops, we messed up. Audi and Mercedes-Benz are two carmakers that incentivize the purchase of prepaid maintenance by increasing the residual value, or estimated long-term value of a vehicle assigned by the lender, of the leased vehicle.

With the residual increase, the vehicle is estimated to be worth more at the end of the lease since it would have been properly maintained at the dealership. To incentivize the prepaid plan, the dealership will pass on those savings to the consumer, thereby reducing the price of the plan. Weintraub gave the example of a lease for a Audi Q5 with a residual value of 55 percent.

This story was provided to The Associated Press by the automotive website Edmunds. Ronald Montoya is a senior consumer advice editor at Edmunds. Rebecca Betterton. Written by. Rebecca Betterton is the auto loans reporter for Bankrate.

She specializes in assisting readers in navigating the ins and outs of securely borrowing money to purchase a car. Edited By Chelsea Wing. Edited by. Chelsea Wing. Chelsea has been with Bankrate since early She is invested in helping students navigate the high costs of college and breaking down the complexities of student loans. Share this page. Bankrate Logo Why you can trust Bankrate. Bankrate Logo Editorial Integrity.

Key Principles We value your trust. Bankrate Logo Insurance Disclosure. What is a prepaid car maintenance plan? I was able to resist the pressure on the other upsells, but he got me on the maintenance. Just wondering how much I should be kicking myself. For reference, I drive between 12KK a year, so figure one or two oil changes in addition to the factory scheduled maintenance. You project that you will put between 48, to 60, miles on that car.

Beer me up Keep it simple or deck yours out with RGB lights, a touchscreen, and even a digital thermostat. Typically, if you buy an aftermarket warranty, that warranty acts as an extension of the factory coverage once that manufacturer warranty expires.