When people purchase brand new cars, they expect that a service contract will likely be a part of the deal. However, they frequently do not hold the same expectation for used cars. Fortunately, understanding used car service contracts is an activity in which you can engage.
Who Can Provide Them
Understanding used car service contracts means that you have to realize the limitations of them. For example, if you choose to purchase a vehicle from a private dealer, then you’re not going to have a service contract. Once the drive leaves the person’s home, he or she is no longer going to want to be responsible for it. In order to have a service contract, you are going to have to buy a car from a dealership.
Length of the Contracts
It’s important to understand how long you are going to have the car for when you make the decision to add these service contracts. For example, let’s say that the service contract is offered for 10 years, but the car you are buying is already seven years old. Is it really worth it to pay for a 10 year service contract Do you really plan to drive around a vehicle that is 17 years old Most people would likely purchase a different vehicle by that point, so keep that in mind.
Obligations on Your Part
The service contract might state that any work on the car will be taken care of through paying a certain amount each month. However, this note might apply only if you are bringing your car for regular maintenance. You must also check if a certain place exists to which you must bring the car if you want these guidelines to apply. Ask all of these questions before you go into the contract.
Read It All
As with any contract, you need to understand what you are signing. You want to know exactly what type of service you are receiving, how frequently it will be done, if the price is fixed for the duration of the contract and so forth.
Therefore, in order to fully understand car service contracts, you need to
- Consider where the car is being purchased
- Evaluate the length of the agreement
- Take your own obligations seriously
- Read all of the information
Being sure to take all of these components into consideration will help you craft the right plan when you’re applying for auto financing on your next car.