At Approved Loan Store, we are always on the look-out for ways for our readers to save money on their new or used car. Oftentimes, though, we focus too much on the initial purchase of the car and don’t consider other long-term expenses associated with that car like insurance or maintenance. We saw this tip from CBS News today and wanted to share it with our readers so they can avoid this costly car maintenance mistake.

Some car dealerships are offering dealer service contracts as part of the car loan agreement. While these agreements do vary (and there are some good service contracts available), some of these service contracts are not worth the money. The contracts are usually more than twice the cost of routine maintenance, and even if the car runs into other problems, the contract might not cover the costs.

Once again, these rules do not apply to every dealer service contract, and depending on the circumstances, it could be the right choice for some car buyers. As always, we recommend reading over the agreement carefully, and don’t be afraid to ask questions. This is a financial obligation, and you want to make sure that it is worth the cost.

To learn more about buying and maintaining your car without breaking the bank, like Approved Loan Store on Facebook and follow Approved Loan Store on Twitter. If you’re looking for a fast and easy way to get into a new or used car, Approved Loan Store can help, no matter what your credit! Fill out our secure online auto loan application here!

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