Why you should buy a vehicle service contract?
Vehicle service contracts help you pay for unexpected mechanical breakdowns, such as engine or transmission failure, electrical issues, air conditioning and heating, and myriad other repair issues. These repairs can cost hundreds to thousands of dollars.
What does a vehicle service contract cover?
Sometimes referred to as an extended warranty plan (though not officially a warranty by legal definition), a vehicle service contract is a paid plan that helps cover the costs of any repairs needed once the limited warranty has expired. As the car ages, the likelihood of it needing repairs rises.
What is the average cost of a vehicle service contract?
The average vehicle service contract can cost $1,000 to $1,500 if purchased from the dealer or manufacturer. However, with third-party extended warranty, you’ll find more affordable market prices based on a wide variety of coverage packages.
Can you cancel vehicle service contract?
A: Yes. California law provides that you can cancel your service contract at any time, and receive a refund. * Depending on when you cancel, you can either get a full refund, or a pro-rated refund. The cancellation or administrative fee cannot exceed 10% of the price of the contract, or $25.00, whichever is less.
Does doing your own oil change void warranty?
Changing your own oil won’t directly void your manufacturer’s warranty. If you’re going to do your own oil changes, make sure to use the type of oil recommended by the car manufacturer. Furthermore, you should keep all receipts as proof that the correct products were purchased.
How do I cancel a service agreement?
To cancel, write a letter to the dealer and the warranty company. If you are financing your vehicle, the price you paid for the service contract may be credited to your account balance.
Can you get a refund on a service contract?
The contract holder is entitled to the refund of the full purchase price of the contract if the request is made during the time period specified in the contract (which period may not be less than 10 days, or 20 days in the case of mail) and where no claims have been made.
Can I get my money back from a service contract?
Your right to cancel After 60 days, you can still cancel and receive a partial refund. On a used vehicle, you can cancel a service contract within 30 days without penalty. If you are financing your vehicle, the price you paid for the service contract may be credited to your account balance.
Is a service contract better than an extended warranty?
A service contract is sometimes called an “extended warranty,” but service contracts are not warranties. A service contract can help you fix or maintain your product for a specific time — like a warranty. But, unlike a warranty, service contracts cost extra.
Does putting a cold air intake void warranty?
Will a Cold air Intake Void my factory warranty? No. These rights are protected under the Consumer Products Warranty Act of 1975 (also referred to as the Magnuson-Moss Warranty Act). A warranty is a guarantee or promise made by a manufacturer, and is included with their product at no charge when it is sold as new.
What is a vehicle service contract and how does it work?
What Is a Vehicle Service Contract? A vehicle service contract – also called an extended auto warranty, vehicle protection plan, or extended service contract – protects you from paying for unexpected car repairs out of pocket after your factory warranty expires.
Should you buy a service contract for your new car?
If you’re buying a new or used car, the salesperson might try to sell you an auto service contract to help protect against unexpected or expensive repairs. While a service contract might sound like a good idea, it could duplicate coverage you have through your manufacturer’s warranty.
What are the benefits of a a service contract?
A service contract, sometimes referred to as an extended warranty, can offer a car buyer many benefits. The added protection they provide can give many consumers the extra security that they need when making the commitment to finance a vehicle.
What are auto service contracts and extended warranties?
Auto service contracts and so-called extended warranties are common “add-ons,” optional products and services offered by the dealer in connection with a new or used car purchase.