Auto Service Contracts: What You Need To Know

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The auto service contract accompanies your purchase of a car, it is not a contract that every dealer enters into, but some do. In fact, most car buyers are entitled to such a contract by default as it protects their car even after the purchase. These contracts entitle the car buyer to after sale services for their car from the car dealer in case a repair or maintenance of some sort becomes necessary. These are assurances that lay the foundation for a good customer businessman relationship.

An auto service contract and an extended warranty is not the same and it is imperative that you understand that. The difference between the two lies in the fact that the price of repairs and maintenance during the warranty period is included within the price package of the car itself, but an auto service contract entitles you to the same facilities even if you did not exactly buy a new car.

Consider a few factors while entering into an auto service contract as this is a financial decision that needs to be planned and understood carefully.

Terms and conditions are very important, so read carefully before signing. The thorough reading will help you understand the contract and its positives as well as its negatives, which in turn will help you make a better decision.

Make sure that the company or organization or mechanic shop who will help you with the services and the maintenance is someone that you familiarize yourself with to avoid problems in the future.

Now, about the most important thing that you must do before you even buy from a dealer is to find out about the reputation that the dealer or organization holds in the auto market. Never buy from an ill-reputed dealer as that will only risk your car investment as well as the auto service contract’s actual validity and commitment.

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