Auto Contract Service Warranty
Although a service contract is sometimes called an "extended warranty," it is not a warranty as defined by federal law. A warranty comes with a new car and is included in the original price, whereas a service contract may be arranged at any time and always costs extra. Buying a car is not just simply buying a car. When a person wants to buy a car, there are many additional services and expenses that are included.
To help decide whether to buy an auto contract service warranty, a few things you might consider before making your decision.
Does the service contract duplicate any warranty coverage?
Compare it with the manufacturer's warranty or you could be paying for coverage you already have. Most new cars offer coverage for a certain amount of months or so many thousand miles. You would want to check and see if the car was still under the manufacturer's warranty.
Few auto service contracts cover all repairs. Common repairs for such parts as brakes and clutches generally are not included in service contracts. If the service contract does not list an item, assume it is not covered. It is wise to be specific as to what the service contract covers.
Usually, the price of the service contract is based on the car make, model, condition (new or used), depth of coverage and length of contract. Cost of the service contract can range from several hundred dollars to more than $2,000. In addition, you may need to pay a deductible each time your car is repaired.
Auto service contracts are usually made by the car dealer responsible for providing these services or repairs but not always.
Like any other financial decision, careful deliberation is important before making some final decisions.
Here are some additional things you might considered when getting an auto service contract:
1. Buyers should be aware of the terms and conditions stipulated in the auto service contract.
It is important for every buyer to know the terms as stipulated in the contract. Be specific as to what kinds of details are included as well as those they are not included. In every agency or company that provides auto service contracts, each has its own terms and conditions
2. Buyers should know the specific person or place where the required services will be taken care of.
The buyer or contract holder would want to know where to go when a certain service is required.
3. Know the reputation of those who will provide auto service contracts.
It is important to know how long the company or the dealer has been in the business. Reputation that has been built over a period of years brings peace of mind in getting reliable service to the holder of an Auto Contract Service Warranty.
