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.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 or a mechanic overcharging for minor repairs, most people have had experience or heard stories of fraud in the auto industry.In Kansas City, a man who ran a used car dealership and auto parts store recently pled guilty to giving money to al-Qaida. Obviously that's not the norm, and the honest businessmen outnumber the criminals, but crooks are out there.Buying a car is a significant investment and consumers need someone they can trust. That's where AA Auto Protection comes in. By purchasing a bumper-to-bumper warranty, a car is completely covered if it breaks down.That protects consumers on two fronts: from used car salesmen who offload suspect vehicles with a high chance of breakdown and mechanics who mark up maintenance costs.Car sales are a big business, and the profits have attracted some sharks over the years. But consumers who have an extended warranty needn't fear the more unscrupulous businessmen.
5/19/2010 10:40:21 PM
4/16/2010 2:30:45 PM
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 ...
