What Is An Extended Service Agreement
The manufacturer`s warranty and an automobile service contract cover large parts, works and taxes in the event of a mechanical failure. And did you know that the majority of dealers that offer an «extended vehicle warranty» actually come from a third-party supplier? These are the same contracts that Endurance offers our customers to protect their cars. The FTC often receives letters from consumers asking what they can do when they have a service contract with a company that withdraws from the business and cannot refund its rights. Unfortunately, there are few things you can do if this happens. Before signing a contract, think about the company`s financial situation and consider whether the company is serious: most vehicle service contracts are sold to car dealerships at the time of the sale of the vehicle although other sellers offer them outside the dealership, often at lower prices. An extended warranty may be offered by a car manufacturer for its certified used cars (CPO), which it has inspected and restored to an appropriate level of service. Certified used vehicles are generally less than five years old and less than 60,000 miles old. They can be previously leased vehicles or trade-ins and are usually in good condition at first. If they charge a premium for a «certified» used car, manufacturers will receive an extended warranty, but it will not cost the buyer anything. If you are buying a new car, a used car or your current warranty has expired, it may be advantageous to purchase a service contract.
If you plan to get rid of the car in a few years and your car is in good shape, they might be better off setting aside 50 to 100 dollars a month in a separate car repair fund. If you plan to drive your car until it dies, or if your budget doesn`t allow for a car repair fund, a service contract could be a great protection in case something big goes wrong. If you have a problem with a car service contract, first try to resolve the dispute with the supplier. If this does not work, speak to your Attorney General, the National Insurance Commission or the local consumer protection authority. You can also file a complaint with the Federal Trade Commission. There are more drawbacks than tickets for the purchase of extended warranty coverage, if you can afford expensive repairs and plan to buy another car in the next few years. If you have already experienced a major car repair, it can be annoying to be forced to fork out a considerable amount of money. But wouldn`t it be nice if someone else accepted the bill that will allow you to easily get back on the street? With an automobile service contract, it`s just like that. Find out if the car service contract is signed by an insurance company. This is necessary in some states.
If the contract is covered by an insurance company, contact your public insurance commission to ask for the solvency of the company and if there are any complaints. 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. A typical advanced warranty can be 84 months or 100,000 bumper miles to bumper, or 24 months or 24,000 miles, but why the difference? Depends on how they count the months. Some extended warranty programs can be covered from the first operating date of the vehicle from mile 1, while others start coverage from the purchase of the vehicle.