Service contracts are the first thing that a buyer looks for when buying a car. Car sellers also use this tool for selling their car if the service contracts offers variety of services for a longer period of time. One cannot guarantee that these extended contracts will help you or will provide satisfactory service to you when required. It depends on you whether you want an extended contract or not.
You should consider the pros and cons of the contract. Also should look at the history of the selling dealer whether they have been providing the service on time or service quality is satisfactory. Buying this contract means that you have to pay an extra amount of money along with the amount of vehicle you are purchasing.
This contract is between you, the dealer who is selling the contract and the administrator of the contract. Under this contract the car will be repaired by the dealer and the responsibility of arranging the funds is the work administrator. He has to provide the funds when your car needs the repairing.
The third party repairs the car with the consent of the administrator. Coordination of selling dealer is also important which cannot be ignored because it is the dealer with whom you will be contacting for repairing the car. The features of one of extended service contract are mentioned below:
1. Comprehensive coverage will be provided on transmission, front suspension, front or rear wheel drive, brakes, engine, air-conditioning, electrical and power train.
2. $50 will be subtracted each time when repairing services are consumed.
3. Coverage service will be provided for the period of 72 months or 6 years or if the vehicle has traveled 100,000 miles.
4. Apart from this the service holder can gain the benefit of substitute vehicle and also the assistance at roadside for 24 hours.
5. If the service holder wishes to extend the period of the service then he has to pay $1395 for extending the period.
6. In case the service is not utilized by the holder then he will be able to get the full price back.
Different companies provide different terms of the services. Not all of them will be offering same services. You have to look for the most reputable company whose repute in the market has been good and is maintaining the quality of its services. You should grab the services of a good dealer as soon as possible because they are offered for limited time period. Some people confuse the term extended warranty with the extended services where as both are totally different services. Only the company that has manufactured the car is authorized to sell the extended warranty.
Extended service contracts offer more profit than the extended warranty service. This is the reason why you would find more dealers selling the extended service contract. Before purchasing, make sure you read all the terms carefully and select the one that meets your requirements.
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