![]() Many service contracts sold by dealers are handled by independent companies called administrators. It could be the manufacturer, the dealer, or an independent company. The value of an auto service contract is only as good as the company that’s responsible for coverage. You also may need to pay a deductible each time your vehicle is serviced or repaired. Prices can range from several hundred dollars to several thousand. What you’ll pay for coverage is usually based on whether a vehicle is new or used, its make and model, what repairs or services are covered, and how long the contract lasts. Ask questions and get answers in writing about It probably won’t help to have a service contract that starts before the manufacturer’s warranty expires. New cars usually come with warranties for a certain number of months or miles, whichever comes first. Or they may try to include them in the paperwork you must review, without discussing them with you, and without your understanding or approval.īefore you buy an auto service contract, compare it to the manufacturer’s warranty that came with your car. Dealers typically mention auto service contracts and other “add-ons” after you’ve spent a long day at the dealership. When you buy a new or used car, dealers or independent companies will often try to get you to buy an auto service contract - which is sometimes called an “extended warranty.” Auto service contracts are optional products and can be expensive. The records will be helpful if you have to use your warranty and show that you properly maintained your vehicle. Keep records of repairs and maintenance like oil changes, tire rotations, belt replacement, new brake pads, and inspections. The warranty company could ask for your maintenance records. The manufacturer or dealer must prove the aftermarket or recycled part caused the damage before they can deny warranty coverage. If that happens, the manufacturer or dealer can deny warranty coverage for the damaged part and charge you for repairs. ![]()
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