you’ll pay to fix it before you’ll worry about making the payment, so they’relowering their own risk. And if the car is well maintained, it will generally
hold up better and be worth more, especially if you default on the loan andthey need to repossess it.
parts and service contract if they offer their own. TIP: Some lenders don’t want to finance another company’s^
Others are fine with it, and there are laws to prevent discrimination againstoutside company’s products. About the only legitimate concern a lender
can raise is the price of the plan; they’ll have stipulations on how muchthey’ll loan on it. If it’s not overpriced, you shouldn’t have too much trouble (^)
getting any legit contract rolled into the loan.
If you don’t finance the service contract with the car, many sellers will eitherhave 12-month financing, or let you put it on a credit card. Of course, you
can always pay cash.
FACTORY-BACKED PROGRAMS
Technically, the only one who can warranty a product is the manufacturer ofthat product. An “extended warranty” should (in theory) be an extension of
the original factory warranty—but rarely is. These days, most every servicecontract that has a car company name on it is merely a “branded product,”
administered and underwritten by a third party. This ranges from Ford and