Service Contract For Cars
Description
How to fill out Services Contract - General?
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FAQ
A vehicle service contract is designed to help protect you from the cost of vehicle repairs beyond your original manufacturer's warranty. So, if you plan on keeping your vehicle for a few years (versus trading it in for a new model) a vehicle service contract may be a good option to continue coverage on your vehicle.
If you are buying a new car and the length of the service contract is similar to that of the manufacturer's warranty, it's probably not worth your money. Most new cars don't require many repairs during the first few years. And if your car does need repairs, they're likely to be covered by the manufacturer's warranty.
A service contract, also called an extended warranty, is a contract that covers certain vehicle problems or repairs after the dealer's or manufacturer's warranty expires. You might find one of these offered through an auto manufacturer, car dealer or warranty administrator.
Most often, Service Contracts include details such as deadlines and payment agreements. Contracts also usually define the work to be performed and what process needs to take place if changes need to be made. These are legal agreements and can be challenged if needed.
