What is a Car Service Contract?
Are you shopping for a new car? If so, a car service contract is a very important part of buying your vehicle. This is a special contract between the buyer and the seller that guarantees to the seller the buyer will fix certain aspects of the car if it does not meet the specifications stated at the time of sale. This contract or warranty usually lasts for a certain number of years or a certain number of miles, whichever comes first. The normal term lasts from one to five years. New cars often come automatically with a warranty. When purchasing a used car, ask if a warranty is available.
Basic car service contracts are usually bumper to bumper. This means they cover almost everything. Tires and batteries may not be covered as they likely have a warranty of their own. Items such as belts, wiper blades, and hoses are usually not covered because they experience regular wear and tear. Rust is also normally not included because vehicles near the ocean or in snowy climates where salt is spread on the road may endure faster corrosion. You may be able to add on a rust package to your basic warranty package. For a more extensive contract, consider a drive train warranty. This covers parts that make your car run like your engine and transmission. You may also be able to add a roadside assistance package to your warranty.
When shopping for your car, you may want to consider an extended contract. Your cars service contract may allow you to buy a longer term warranty. An extended warranty goes beyond a regular car service contract. The basic contract is offered by the manufacturer. An extended warranty is one between the car owner and warranty company. If you do purchase a long term warranty, be sure to read the fine print as to what is covered in your contract. To avoid a higher priced extended warranty later, you may wish to purchase this contract before your manufacturer’s contract runs out. Doing so can save you money since the contract price is often based upon the age and mileage of the vehicle.
When signing a car service contract, it is vital that you read the entire agreement. You must understand what is covered in your service contract. Also be sure to keep a copy of your contract in a safe location if you should need to review it.
