Service Contracts

August 10, 2011
Carol Beddingfield
Executive Director

Chamber Chatter

Are you shopping for a used car hoping to save money? The value of used cars is at an all time high. The smart shopper will not only price shop but will also weigh all the benefits of new versus used.

When considering the purchase of an auto service contract or sometimes called an “extended warranty”, know all the terms of the contract.

A service contract is not really a warranty according to federal law. A warranty comes with a new car and is included in the original price. The service contract can be negotiated at any time the car is sold again and will always cost extra.

Many service contracts sold by dealers are handled by independent companies. The cost can range from several hundred dollars to more than $2000.00. A deductible may also be charged for each service.

Never enter into a contract that denies coverage for any reason. Check to see if you can take the car to any authorized repair center or does it have to be returned to the original dealer.

Maintaining the car is your main responsibility. Lack of maintenance will void many contracts. Be sure to keep records.

The final step before deciding on the contract is to verify that it will transfer to the new owner if you decide to sell the car.

Do not sign a contract with blank spaces. Keep a copy of the contract in your vehicle along with the title and insurance verification.

The following car dealers are members of the Chamber: Carl Gregory Ford, Chitwood Motor Sales, Devan Lowe, and High Country Toyota. Check with these companies for your car needs.