When you buy a new or used car, the seller may encourage you to buy a car service contract to protect you from unexpected or costly repairs. A service contract may seem like a good idea, but it may overlap with the existing manufacturer`s warranty. So before you spend the extra money, do some research to see if a car service contract is worth. The cover is very different. Warranty. If the manufacturer`s warranty for the used car is still in effect, you may have to pay a fee to be profitable, making it a service contract. However, if the distributor accepts the manufacturing costs, the cover is considered a guarantee. Automotive service contracts are sold by automakers, car dealers and independent suppliers. If you are considering a service contract, shop around so you understand exactly what you`re buying. If you decide to purchase a service contract through a reseller – and the contract is supported by an administrator or a third party – make sure that the merchant passes on your payment and that you will receive written confirmation. Some people discovered too late that the merchant was not transmitting their payment, so they no longer had coverage months after signing a contract.
If you have reason to believe that your contract has not been implemented as agreed, contact your local or government consumer protection authority. For risk aversion, it would seem to pay for the extension of the manufacturer`s warranty (technically a renewed service contract), albeit for rest reasons. However, third-party companies that negotiate expanded guarantees are notoriously dubious – and often claim to be legitimate providers, that they are only proven to be fraudulent for months or years. A service contract is a commitment to perform (or pay for) certain repairs or services. Sometimes referred to as an extended guarantee, a service contract is not a guarantee under federal law. A service contract can be agreed at any time and always costs a surcharge; A warranty comes with a new car and is included in the purchase price. Used cars can also come with a type of warranty coverage. If your car needs to be repaired or maintained, you can choose between several service dealers or licensed repair centers. Or you have to take it to the dealer you bought it from.