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.Buying used over new may seem like a smart decision for a car shopper, particularly one affected by the economy. However, used cars may come with a number of hidden costs that can be prevented with the purchase of an extended warranty. With the auto industry itself in trouble, new car prices will continue to rise, making buying a used car the only option for some consumers. Yet used cars have already been on the road for several years, making them more prone to breakdown. Another thought may be to continue driving your current older model. But this road can have its pitfalls as well, since continuing to drive past the dealer's warranty coverage will leave you vulnerable to big bills at the repair shop. This is where an extended warranty comes in. Apart from providing peace of mind, it is often a cheaper fix to the car situation than investing in a newer model. By purchasing a used car with an extended warranty, you can have the benefits of a new car without the cost.
4/16/2010 2:30:45 PM
5/19/2010 10:40:21 PM
Unfortunately, the automotive industry has gotten a bad name in terms of defrauding its customers. Whether it's a used car salesmen using misleading sales tactics ...
