The Benefits of a Service Contract

by Sheryl Faber; Updated September 26, 2017

A service contract can be very beneficial in the purchase of large mechanical items, such as an air conditioning system. Maintenance and repairs can be very costly and service contracts can help counteract expenses and alleviate other problems.

Cost Benefits

A service contract can save a customer large sums of money in maintenance and repairs. Adding the cost of a service contract to your purchase can easily pay for itself when expensive equipment breaks down.

Product Quality Assurance

A company will be less apt to construct a faulty or poorly constructed product if a service contract is available to the consumer, because the repair and replacement costs will revert back to them.

Ease of Mind

A service contract will provide a customer with the ease of mind that if anything happens to the product, it will be taken care of with minimal or no effort from the buyer. This is especially true of large purchases such as appliances, vehicles and farm equipment. An individual will be more likely to make a purchase if a service contract is available to counteract potential future problems. He will not have to worry about finding a repairman or repair location to have the situation resolved.