Service Agreement Program Notice

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. 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. 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. Few service contracts cover all repairs. Frequent repairs to parts such as brakes and clutches are generally not included in automotive service contracts.

The best advice: if an item is not mentioned, you assume it is not covered. Pay attention to absolute exclusions that refuse coverage for any reason. Example: If a covered part is damaged by an uncovered part, the claim may be dismissed. Or if the contract provides that only “mechanical failures” are covered, problems caused by “normal wear” may be excluded. If the engine needs to be disassembled to diagnose a problem, and during the process, the mechanic discovers uncovered parts that need to be repaired or replaced, you may have to pay for the work involved in demolishing and reassembling the engine. 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”. 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. Receive his pink letter with the warning “RESPONSE TO THIS NOTICE REQUESTED.” This is just one of the many letters and phone calls, ALL SCAMS that will be received after the purchase and registration of a vehicle. Ask a service manager at a dealer if these guarantees are worth it. The only extended warranties that are worth something are those purchased through the manufacturer.