What’s the real value of a powertrain service contract on a used car?

[Layla56]

I just bought a used car and the dealer included a service contract, but I’m not sure if it’s actually worth the money I paid for it. It covers the powertrain for three years, but I’m hearing mixed things about whether these plans ever pay off for someone who doesn’t drive a huge amount.

[Jack_B]

I bought a used car with a service plan and I drive around 8k miles a year. I never had a big claim, and when something did pop up it wasn’t always covered or I had a deductible. It felt like I paid for nothing most of the time.

[GregoryZT]

I did the quick math when I was shopping. If two big powertrain repairs would happen in three years, the plan would be worth it; if not, you just threw money at it. For low mileage, the odds seem tilted toward not breaking much.

[NathanUT]

Maybe the problem isn’t the plan at all. If the car’s generally reliable, the plan buys peace of mind more than money saved. Or maybe you end up using it for something else entirely. I’m not sure that’s the real problem, though.

[StevenMR]

I’d ask the dealer for the claims history and the exact exclusions, and compare that to setting aside a little emergency fund for repairs. I did that and it helped me see the plan isn’t a slam dunk.