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. Be vigilant with quick spokespeople. Telemarketers who set up car warranties often use high-pressure tactics to hide their true motive. Take your time. Most legitimate companies give you time and written information about an offer before you are asked to commit to buying. 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 ».
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. 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. 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.