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  • 20. Dezember 2020

    What Is An Extended Service Agreement

    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“. Used cars that are not sold under a CPO program or to a used car dealership that are not related to a car manufacturer can offer something very close to an „extended warranty,“ an after-sales service contract. Extended warranties and service contracts are so similar that conditions are often used interchangeably. You can even buy a service contract from a third party that has nothing to do with the used car dealership or for a car you already own. The main difference is that, while the automaker offers a free warranty, you pay for a service contract. One of the nice things about buying a service contract from a dealer is that you can usually add the fee to the financing contract. An extended vehicle warranty or service contract covers the costs of certain types of repairs in addition to or after the end of the manufacturer`s warranty. When looking for a serious extended service plan provider, we advise you: also beware of unscrupulous dealers who may try to include a car service contract in your credit without your consent. If you see a fee for a service contract that you have not accepted, ask the dealer to take care of it before signing the loan agreement.

    Note that you may have other expenses, such as. B a deductible or a tax if the item is served. You may need to send the product to a repair centre – so consider shipping costs. Some service contracts set repayment amounts. For example, car service contracts cannot fully cover towing or car rental costs. In addition, you may have to pay a replacement amount if you sell the product. 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. Our review team reviewed several vendors, and we found that Endurance and CARCHEX are excellent providers of extensive service plans at a reasonable cost. Automotive service contracts are designed to protect consumers from unforeseen and costly repairs. A person`s coverage for a particular repair is based on the terms of their car service contract.


    Verfasst von Stefan Oberhauser

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