Car Maintenance Agreement
Coverage varies by provider and contract, so read the policy before signing up. They usually come with a long list of exclusions, such as routine maintenance, normal wear and tear, theft, and vandalism. If a service is not listed, assume that it is not covered by the policy. Our Driver Plus prepaid maintenance program keeps your customers` vehicles running smoothly and helps you maintain a service relationship over time. Through our program, you offer new and used car customers perfect coverage and conditions for a variety of vehicles. Prepaid maintenance services include engine oil and filter replacement, lubrication, inspection and tire rotation. The service is always performed at your dealership, which improves brand awareness and customer loyalty while increasing the commercial value of your customers` vehicles. There is no deductible and with two plans available, all new and used vehicles in the price book are eligible without any age or mileage restrictions. 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.
Vehicle maintenance contracts are quite easy to understand. This is a contractual agreement between you (a car owner) and a third party (called an administrator). What value do you have as a car owner from a vehicle maintenance contract? The Administrator agrees to pay for certain repairs or services for your vehicle for a certain period of time (or distance travelled) as described in your contract. Once you have signed the policy, you will receive a written confirmation that the merchant has sent the payment to the appropriate administrator. If you are using the car, keep records and receipts for the repair and maintenance of the car. The service contract usually does not cover pre-existing conditions, and records may show that you have provided preventive care. Some manufacturers offer separate warranties for tires or car batteries, but in general, items that are usually replaced by routine maintenance are not covered. Instead, the lid is based on a mechanical failure. You do not need to call on the dealer for repairs or maintenance in order to maintain your warranty in effect.
In fact, it`s illegal for a dealer to deny your warranty coverage simply because you`ve had routine maintenance or repair by someone else. That is, the dealer or manufacturer may require you to use the selected repair facilities if the work is done free of charge under warranty. 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 have properly maintained the car. Many years ago, I bought an “extended warranty” on a new car. After receiving the warranty document, I was surprised (my mistake because I had not read the contract in its entirety in advance) when I learned that the “warranty” terms required service intervals that exceeded the manufacturer`s service recommendations. For example, it required a transmission fluid and filter change every 10,000 miles, far exceeding service requirements even in the harshest operating conditions. It became clear to me that if I had to conscientiously maintain the car under the “extended warranty”, there would never be a need for repair. I, on the other hand, would spend money on unnecessary maintenance, which would completely erase the potential savings that a “warranty” would have to cover. Assurant supports your dealer with a number of benefits that will help you grow your service maintenance business.
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. When a customer pays for extended coverage, it is a vehicle service contract. According to Magnuson Moss, if a dealer sells a vehicle maintenance contract to the customer within 90 days of the sale, the dealer cannot exclude implied warranties. In approximately 38 states, a merchant may otherwise exclude express and implied warranties. This is done in the guide for used car buyers and in the RISC or leasing contract.
As part of Driver Plus, customers benefit from simple, affordable and convenient maintenance options that save them from keeping their car on the road. Let`s look at these two reasons why you should consider an extended vehicle service contract for a new car. The average vehicle maintenance contract can cost anywhere from $1,000 to $1,500 when purchased from the dealership or manufacturer. However, with the third-party extended warranty, you`ll find more affordable market prices based on a variety of coverage packages. CARCHEX has been in business for 20 years and holds an A+ rating from the Better Business Bureau (BBB)….