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Sunday, January 30, 2011

Vehicle Service Contracts

Vehicle Service Contracts

All vehicles suffer from break downs at different instances. It is difficult to cater for high repair costs especially if your vehicle constantly suffers from unforeseen break downs. A vehicle service contract is the solution to comprehensively protecting your vehicle from costly future repair costs.

A vehicle service contract is purchased at any instance from car dealerships or independent companies. It can be thought of as an insurance policy and defers from initial vehicle warranties minimally. The service contracts cover a car's repair and maintenance costs during a given period of time. New cars and relatively new cars may get much more comprehensive extended coverage as compared to used cars, which are offered limited service contract coverage. It is important to weigh the extent to which a vehicle service contract will cover your car before purchasing one.

If your car does not have an initial warranty or lacks comprehensive coverage, a service contract would be ideal for your car. A vehicle service contract offered by vehicle manufacturers hold much more weight than those offered by independent companies. The cost of service contracts are usually determined by the make of the car, the particular car model, the condition of the car (especially in the case of used cars), the extent of coverage and the length of coverage. The vehicle is covered to a certain extent and there are a few service contracts, which cover repairs of all natures. It is wise to watch out for such policies that exclude certain repair costs for instance a policy only covering mechanical breakdowns meaning that they will not cover problems arising from wear and tear. In the instance of a repair, the contract may require you to take the vehicle to the car manufacturer for repairs, in the case of a contract purchased from the car manufacturer, or the contract may allow you to select a service dealer to carry out repairs on your vehicle. When acquiring the contract find out exactly how claims will be handled. These contracts hold you accountable to follow certain manufacturer recommendations such as oil changes. In the instance that you deviate from the recommendations, the contract may be declared void. The car service contract should be able to work for your requirements. If you plan on selling your vehicle in the nearby future it would be beneficial to get a transferable service contract. This aspect highly helps when selling your vehicle. Added fees may be applied to transferable service contracts.

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