When buying a used car, pay attention to the buyer`s driver who has been posted on the side window. The FTC is requesting a guide for all used vehicles sold by dealers. The question is whether a service contract is available. It also indicates whether the vehicle is sold with a warranty, only with unspoken guarantees or « as it is ». Also beware of unscrupulous dealers who may try to include a car service contract in your credit without your consent. If you see a fee for a service contract that you have not accepted, ask the dealer to take care of it before signing the loan agreement. 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.
You may have to pay for covered repairs and wait for the service company to reimburse you. If the car service contract does not usually indicate the duration of the refund, ask. Find out who needs to settle claims in the event of a dispute with the service contract provider and use a dispute resolution program. Find out who performs or pays for repairs under the terms of the service contract. This may be the manufacturer, distributor or independent company. Many service contracts are entered into by companies called directors that authorize the payment of debts to all merchants under the contract. If you have a dispute over whether a right should be paid, contact the administrator. When the administrator leaves the business, the trader may continue to be required to execute under the contract. The reverse may be true: when the trader withdraws from the company, the administrator may be required to comply with the contractual terms. Whether you have recourse depends on the contractual terms and/or laws of your state. 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.
A service contract is likely to bring benefits only after the manufacturer`s warranty has expired. Check the documents to make sure this applies before you accept the purchase of a service contract. 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. 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.