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Ford ends Mercury line as auto industry becomes more competitive

Rated 3.3. Votes: 3

Sometimes called an "extended warranty", a service contract is a promise to perform (or pay for) certain repairs or services. Although technically not a “warranty” as defined by federal law, service contracts may be arranged at any time and always costs extra. Warranties, on the other hand, ONLY come with a new car and are included in the original price. Vehicle service contracts are popularly referred to as "extended auto warranties" or "extended warranties". Use of the term "extended warranty" or "warranty" on this site is intended to refer to vehicle service contracts and not manufacturer's warranties.

Ford is preparing to kill its 71-year-old Mercury brand, another sign that the auto industry has become much more competitive in recent years. As automakers end support for their brands, drivers with older cars should consider investing in an auto warranty in order to protect against rising costs.

When a brand is phased out, the automaker will cease production on any new vehicles. Motorists who drive old brands may have a tougher time finding parts for their car. All drivers with older vehicles run the risk of breakdown and should consider a bumper-to-bumper warranty.

In recent years, automakers have killed off a number of famous brands in an effort to consolidate their fleets and drive down production costs. Plymouth, Oldsmobile, Pontiac, and Saturn have been recent victims of these moves. GM has also ceased production on its Hummer line, with the last H3 model rolling off the assembly line in Louisiana this week.

Drivers who still own these cars may have difficulty finding specialized parts in case of a breakdown. Protecting a vehicle with an auto warranty also protects the owner of the vehicle from the hefty costs of the repair shop. ADNFCR-2896-ID-19808591-ADNFCR

5/28/2010 7:15:50 PM

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