You don`t usually have to buy a car service contract when you buy a car. They do not have to buy a service contract to get financing. If the merchant tells you that you need to buy a service contract to qualify for financing, contact the lender to find out if this is the case. Some people had difficulty terminating their service contract after learning that the lender did not need it. More than likely, these locations are independent companies that want to sell you extended warranties – specifically service contracts – that often sell for hundreds or thousands of dollars. If you answer a call from an advanced warranty business-pitching, you`ll probably hear high-pressure sales tactics as well as requests for personal financial information and a down payment before receiving details of the service contract. And if you buy a service contract, you may find that the company behind it will not be in business long enough to fulfill its obligations. guarantee. 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. Some car dealerships and dealers only offer services in certain geographic areas. Find out if you need prior authorization from the contract provider for repairs or towing services. Make sure it takes time to get permission, if you can get an authorization outside normal business hours and if the company has a green number for authorization.
Test the green number before you buy the contract to see if you can pass easily. Typically, the price of the service contract is based on manufacturing, model, condition (new or used), coverage and duration of the contract. Advance fees can range from one to several thousand dollars. In addition, you may have to pay a deductible. Find out if the deductible is calculated by visit or repair. It can make a big difference. Suppose you have a $100 deductible and your car needs to be repaired in three. With the per-visit deductible, you pay $100. If you have a deductible per repair, you pay $300.
If the service contract takes longer than you would expect to own the car, ask if it can be transferred if you sell the car and if there is a fee, or if a shorter contract is available. If you buy a „demonstrator,” a new car that has not been in possession, rented or rented, but has been driven by dealer staff, ask when the warranty cover begins and ends. Maybe it started when the dealership put the car into service. 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. Compare service contracts with the manufacturer`s warranty.
New cars have a manufacturer`s warranty that typically offers coverage for at least three years or 36,000 miles, depending on what happens first.