Missing service bulletins is costly, drivers are advised to get extended auto warranty
 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.
Motorists might be surprised to know that every year, automakers identify thousands of car problems that don't warrant recalls. But while car manufacturers send these bulletins out, many drivers don't receive them, or sometimes dismiss those tip sheets as a marketing ploy. When the problem worsens so that they need to bring their car to the mechanic, car owners might find that their warranty is up. In this case, an extended auto warranty could have prevented unsuspecting car owners from dipping into their wallets.
The media buzz about recent car recalls by Toyota is the extreme side of these "technical service bulletins." In fact, the government is currently scrutinizing Toyota's auto-recall process, probing why the Japanese car company did not issue stern warnings before the problems worsened. But as most people in the industry know, car manufacturers, to some extent, have financial reasons to keep this information under the hood.
For car problems that do not reach the recall level, minor fixes or a quick visit to the nearest car dealer are the usual norm. But for those who missed the bulletin, repairs could be costly. It is not unusual to hear stories of power steering conking out while drivers need an extra muscle to steer.
An extended auto warranty can cover this kind of slip-up. Drivers may take comfort from the fact that it can pay for itself in one repair. And the best reason to buy one is the assurance it gives that future breakdowns are well taken care of.
4/15/2010 6:13:31 PM
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