When buying a new or used vehicle, you should consider investing in extended coverage. A vehicle service contract can cover expensive repairs your automobile may need over time. An important step is to make sure you get the coverage the dealer or manufacturer promised. Here are some tips to help ensure you use your vehicle service contract effectively, along with a discussion of the types of service contracts available for new and used cars.
Understand the Terms
An extremely important step in using your service contract is understanding its terms. A vehicle service contract (VSC) is an agreement between you, the car owner, and the car’s manufacturer. Each type has specific conditions you need to follow.
Make sure to read the entire plan conditions, and pay special attention to the terms (fluids, modifications, time, exclusions, services, etc.), as well as the actions, services, and parts required to honor them. You should also find out what could lead to the denial or cancellation of the contract. If there’s anything in your extended service contract you’re not sure of, ask the manufacturer for clarification.
Follow the Service Schedule and Save Service Receipts
Most VSCs require you to service your car at specific intervals. Always follow this schedule, or the contract might be canceled. Saving your service receipts in a place where they are easy to find will help you stay on track. This will also save time when you need to present them to the manufacturer or dealership.
To ensure your VSC is honored, you should bring a copy of your service contract and original receipts with the dates of service included. If your coverage is denied, contact the dealership manager or the service company. Discussing your concerns by phone, email, letter, or other means can help clarify any discrepancies in the agreement.
New Vehicle Service Contract Options
If you’re going to buy a new vehicle, the best warranty will likely be offered by the car’s manufacturer. Most new vehicles come with a bumper-to-bumper manufacturer warranty that covers almost all parts and repairs for three years or 36,000 miles, whichever comes first. Some manufacturers offer longer warranties.
You might also want to consider getting new vehicle extended coverage if you plan to keep your car for a long time or drive a significant number of miles each year. They are offered by manufacturers and aftermarket companies and often provide different coverage options for your vehicle.
Used Vehicle Service Contract Options
If the used car you’re interested in is no more than 3 years old and has low mileage, you might want to contact the dealership or manufacturer. They can check if the vehicle is certified pre-owned or used. Certified cars are typically enrolled in manufacturer programs that promote sales of specific makes and models. These programs offer some of the best VSCs. These are provided by dealerships, mechanics, and technicians.
When buying a car that isn’t covered under a manufacturer’s program, you’ll need to get a used vehicle extended warranty. They’re available from aftermarket contract companies. The best coverage offers repair and replacement coverage of most of your car’s parts and systems at a fair price.