Only a few car maintenance contracts cover all repairs and maintenance. Beware of exclusions that deny coverage for any reason. For example, if the contract states that only « mechanical failures » are covered, problems caused by normal wear and tear can be excluded. The more coverage there is, the higher the cost. The price usually depends on the make, model and condition of the car (new or used), the repairs or services covered and the duration of the contract. Prices can range from several hundred dollars to several thousand. You may also have to pay a deductible each time your car is serviced or repaired. No-deal: Some buyers discover that an extended warranty has been included in their auto financing contract without their knowledge or consent. Then the term of the loan is extended to hide the additional expenses. Some unsavory traders may even bet that you won`t read everything in your contract, and may pinpoint unexpected costs or policies that can hurt you in the long run.

Extended warranties on the one hand seem nice to have, but on the other hand, they can be terribly expensive – and you, as a car buyer, will make a high bet that something is going to go wrong. It`s true that it`s good to be prepared and reassured when buying your new vehicle, but it`s also important to know that extended warranties don`t always cover all repairs. There is an « exclusion list » in the fine print of the contract that omits coverage for certain parts and damages. Read the fine print. Find your policy documentation to see who to contact and if there is a cancellation fee. If you recently purchased the extended warranty and don`t have a contract yet, call the financial manager who sold it to you. For third-party guarantees, you may need to call the company or write a letter to the company. An automotive service contract is a contract to perform (or pay for) certain repairs or services.

Service contracts are sometimes referred to as an extended warranty, but do not constitute a warranty within the meaning of federal law. They are sold by car manufacturers, dealers and independent companies, you can buy them at any time, and prices and coverage vary greatly. For example, some of these contracts may extend the duration or coverage of the included warranty, and others may cover certain maintenance tasks such as planned oil changes. You may not even have full protection for the parts included in the contract. Some companies use a « depreciation factor » when calculating coverage: the company can only pay a portion of the repair or replacement costs based on your car`s mileage. Cost: Warranties are often sold as a monthly purchase. Some buyers later add up the cost of the warranty over the duration of the contract and find that it is much more expensive than they have been led to believe. It is illegal to sell a service contract in California that does not disclose all of the above cancellation and refund rights. The process of cancelling your extended warranty isn`t complicated, but there`s a bit of waiting time. First, you need to contact the dealership where you bought your car and let them know (most likely you`ll talk to a financial manager) that you want to void your extended warranty. Secondly, you will receive a cancellation form to fill out.

Details include the date and mileage of the vehicle. Finally, be careful not to leave without a signed copy of the form to ensure that the cancellation is processed. You are entitled to a FULL refund with no cancellation fee if you send written notice of cancellation within the first 30 to 60 days, depending on the product covered, after receipt of the service contract, provided that no claim has been made. For cars, you will often only receive a copy of the service contract request and perhaps a brooch, but then you will receive the actual service contract in the mail. Sometimes you don`t get all the pages of a multi-part form from the merchant or someone else. A man who attempted to void an extended warranty was informed by the merchant that he had to make three payments before he could cancel, but his contract stated that he could cancel at any time. The dealer is legally bound by the terms of the contract, and this will help you know that you are going inside. 2.

Try multiple channels. Many car buyers report that they encounter dismissal, resistance, or even assault when they try to talk to the tax officer who ordered the sale of the extended warranty. The contract can be supported by the manufacturer, the distributor or an independent company. Many service contracts sold by merchants are managed by independent companies called directors. The directors act as claims adjusters and authorize the payment of claims to merchants under the contract. If it took longer than that, you can usually cancel and recover a prorated amount based on the time elapsed and the mileage you`ve put on your vehicle since then. For more information, see your specific contract. On Monday, I signed a cheap used Toyota 4runner. The dealer was working in a service contract with the price of the loan that I had voluntarily signed. (That`s a whole other story). On Friday, I called the merchant to cancel the service contract, which clearly states that I have 30 days to get the full refund less a $75 fee. By the way, the contract added $1800 to the 4-year loan.

Keep all your service records, regardless of who is running the service. These include oil changes, tire rotations, belt changes, new brake pads, and inspections. Create a file to track repairs – it will come in handy if you need to claim your warranty. If you ever have a warranty claim and it appears that you have not maintained your vehicle, your claim may be denied. You may be able to buy a shorter contract. If the service contract takes longer than expected to own the car, check if it can be transferred when you sell the car, if there are any fees, or if a shorter contract is available. Understand how complaints are handled. If your car needs to be repaired or serviced, some service contracts allow you to choose between multiple service dealers or authorized repair centers. Others allow you to use the dealer who sold you the car. Find out if you need prior approval from the contract supplier for repair work or towing services. If you have a dispute about whether to pay a claim, contact the administrator.

If the administrator leaves the store, the merchant may need to perform the work under the contract. The reverse can also be the case – if the merchant leaves the store, the administrator may be asked to comply with the terms of the contract. Service contracts are generally transferable between owners. In many cases, however, the warranty can be voided if the owner exchanges the car for a new one. A: Yes. California law provides that you can cancel your service contract and receive a refund at any time.* Depending on when you cancel, you may receive a full refund or a pro-rated refund. Extended warranties, often referred to as « vehicle maintenance contracts, » are sold by the financial and insurance manager when preparing your purchase contract. These warranties cover repair costs for different periods of time or kilometers traveled after the expiration of the manufacturer`s bumper warranty. If for some reason you really are not able to void your warranty, you may need to follow your warranty until the end of your contract.

*Note: If you financed your purchase of the service contract, the refund cheque may be paid to the buyer, to a person to whom the service contract was awarded, if applicable, or to the buyer/assignor and the registered lender. You may need to pay for the covered repairs and get a refund from the service company. Ask how long you have to wait to get your money. An automobile warranty is a contract to correct certain defects or malfunctions for a certain period of time after the purchase of a car. A manufacturer`s warranty is usually included in the purchase price when you buy a new car, but used cars can also be covered by some sort of warranty. Automotive service contracts and so-called extended warranties are common add-ons, optional products and services that the dealer offers as part of a new or used car purchase. Often, add-ons such as extended warranties and service contracts can cost thousands of dollars and are only mentioned at the end of an already difficult and long day at the dealership. In other cases, merchants may try to include these and other add-ons in your offer without ever discussing them with you and without your knowledge or consent. So you want to be sure to ask questions, get written answers, know what you`re paying and what you`re getting. Q: Can I cancel my service contract and get a refund? As part of the contract, you may need to follow all of the manufacturer`s recommendations for routine maintenance, such as .B. oil change. If you don`t, the contract can become invalid, causing you to lose your coverage.

Keep detailed records, including receipts, so you can prove that you properly maintained the car. .