Should I get the ‘extra care’ coverage on a used car?
John Paul, AAA Northeast's Car Doctor, answers a question from a reader who's planning to buy a 2016 Corolla.
Q. I am about to purchase a Certified Used 2016 Toyota Corolla LE with 44,400 miles on it. The dealership is suggesting I purchase a Toyota Extra Care Platinum vehicle service contract and a Tire and Wheel Protection Platinum Plus Plan for a total cost of $2,324. I’m retired, and I only drive about 1,200 miles per year. I hope to keep this vehicle as long as possible. The loan I’m considering would be for six years. I would like your opinion as to whether these plans would be worth purchasing.A. The Toyota Corolla is a very dependable vehicle, and — considering the limited mileage you drive — I don’t see the extra coverage as necessary. Regarding the loan: If you financed $12,000 at 3.5 percent interest for six years, you would pay $13,321 for the car. If you shorten the loan to three years, you would pay $12,658. Only you can decide if lower payments are worth the extra overall cost.
John Paul is AAA Northeast’s Car Doctor. He has over 40 years of experience in the automotive business and is an ASE certified master technician. Email your car question to [email protected].
