Automakers band together to stop new auto safety bill
 Sometimes called an "extended warranty", a service contract is a promise to perform (or pay for) certain repairs or services. Although technically not a “warranty” as defined by federal law, service contracts may be arranged at any time and always costs extra. Warranties, on the other hand, ONLY come with a new car and are included in the original price. Vehicle service contracts are popularly referred to as "extended auto warranties" or "extended warranties". Use of the term "extended warranty" or "warranty" on this site is intended to refer to vehicle service contracts and not manufacturer's warranties.
The U.S. auto industry is working together to stop Congress' new proposed auto safety bill, which comes in the wake of a slew of vehicle recalls. With engineering standards called into question, protecting a car with an extended warranty becomes a necessity.
The industry has come under significant criticism in the past few months for cars that put owner's safety at risk, not to mention the inconvenience of breakdowns. Faulty parts on new vehicles will be covered by the manufacturer. However, for the millions of used car drivers out there, only extended auto warranties provide full protection.
The National Highway Traffic Safety Administration is looking to impose stricter penalties on auto companies who turn out a faulty product. But the Alliance of Automobile Manufacturers, which includes GM, Ford, Chrysler, and Toyota, are challenging the validity of the bill, which they feel holds them to a higher standard than manufacturers in other industries.
Under the new bill, the NHTSA would have the authority to immediately recall any vehicle it deems potentially hazardous. As of now, it has to present a case in court, which can take time that American drivers may not have.
Drivers should always consider safety and reliability when purchasing a vehicle. Whether the vehicle is new or used, companies like AA Auto Protection can provide financial protection in the form of a bumper-to-bumper warranty, should a vehicle break down.
5/7/2010 8:49:23 PM
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