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.
7/11/2010 9:32:52 PM
Rated 4.8. Votes: 33
Unless you are fortunate enough to be able to pay cash for your cars, you probably finance. Depending on the lender and your credit score, interest rates for vehicle loans range from 6% all the way to 20% (more in some states). Many buyers opt for a car warranty during the purchase process through a dealership, because it only raises their payments $15-$20. For less than $1 a day, that’s a bargain for the security an auto warranty offers. The hidden cost, though, is that since the warranty price is included in the car loan, the customer is paying interest not only for the vehicle price, but for the car loan.
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7/11/2010 9:16:01 PM
Rated 5.0. Votes: 42
The economic downturn has famously reduced the demand for new cars. The lower price of new vehicles has, in turn, depressed the market for used cars. Drivers who privately sell their vehicles are almost guaranteed to get more for it than if they trade their car to a dealer. These days, private sellers are adding an extended warranty for the automobile their selling, as a way of boosting the car’s value.
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5/26/2010 4:48:45 PM
Rated 4.7. Votes: 3
A used car dealer in Whitman, Massachusetts, has had his license to sell revoked after selectmen found that he was engaging in questionable sales practices. Drivers who buy a used car warranty can protect themselves from break downs resulting from poorly maintained vehicles.
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5/19/2010 5:40:38 PM
Rated 3.0. Votes: 4
In North Carolina, used car sales ranked fifth on the list of complaints to the Better Business Bureau, according to WRAL in Raleigh. Extended warranties offer potential car buyers an extra level of protection against used car scams.
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4/23/2010 6:52:19 PM
Rated 3.0. Votes: 2
The rental car company Hertz has announced it will team with Kelley Blue Book to provide online used car sales through its Rent2Buy brand.
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3/3/2010 7:16:38 PM
Rated 4.5. Votes: 2
With a weak economy, families in the market for a new car may be looking into used cars as a way to save money.
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3/1/2010 10:14:17 PM
Rated 5.0. Votes: 2
With reports of more people purchasing used cars these days, interest in vehicle warranties may increase as a way to offset any repair costs.
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