How to Get an Extended Car Service Contract

When you buy a new car, one of the first things you should look for is the service contract. This ensures that you will be protected for longer than the standard warranty should something go wrong. Of course, having a contract in place does not guarantee that you will get the help you need when you need it. You have to take the time to review what is offered, and how this will benefit you.

Getting the Right Contract

The first thing you need to do is find out who offers the contract. A company like Accelerated Service International (ASI), for instance, has an excellent reputation and many years’ experience. This means that they can be trusted to provide and excellent service. However, since you will pay a bit more money than the agreed price of the vehicle, you still have to properly study the pros and cons.

A service agreement is between you, the dealer, and the administrator (such as ASI). It will stipulate which types of repairs you are covered for, and the dealer will make the arrangement for these repairs. The administrator, meanwhile, pays for them. In other words, you need to know that they pay out when repairs have to be made. A third party is also involved, which is the repairer. They receive consent from the administrator to perform the repairs, which happens after you have spoken to the dealer about having issues with your vehicle.

It is important that your service contract contains at least the following stipulations:

  1. That you have comprehensive coverage on the electrical and power train, the air-conditioning, the engine, the brakes, the front and rear wheel drive, the front suspension, and the transmission.
  2. That a certain amount will be subtracted upon repairs, and you must look into what that amount is.
  3. How long you will be covered for, which is usually six years (72 months), or 100,000 miles, whichever comes first.
  4. That it includes roadside assistance and a substitute vehicle.
  5. That you can further extend the coverage if you need to.
  6. That you will be able to get the money back if the service is not provided to you as stipulated in your contract.

Each company will have its own terms and conditions in their contract. Not every contract is created equal, so you do have to take the time to looking into them yourself. Companies like ASI are very reputable and known to offer a service that is beneficial both for the car buyer and the car dealer. Maintaining this type of reputation means that they perform their job properly, which means accepting claims as they are made, ensuring repairs are completely properly, and making payments on time.

An extended service contract is not the same as an extended warranty, which can only be provided by the manufacturer. It is, in effect, a separate form of insurance. You are under no obligation to take out such a contract, but it is recommended.