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Step 1
Ask yourself a couple questions before purchasing an auto service contract. Is there warranty coverage? If so, does it cover the same services and repairs that the auto service contract provides for?
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Step 2
Compare the various service contracts offered with the manufacturer’s warranty. Are there different levels of warranty that you can purchase? If so, what are the differences between each level? What is the better value for your money? This comparison should also be done before purchasing the car. You should know that new cars typically come with a manufacturer’s warranty. The coverage will range from covering services and repairs for at least 1 year after purchase or a specific amount of miles driven on the car. Some used cars come with a similar type of warranty, so ask before purchasing the car.
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Step 3
Inquire as to who will perform the repairs. Does this repair shop usually work with this kind of car? Some types of cars have very specialized parts and services necessary for top performance, so the auto repair shop should be familiar with the make and model of your particular car. If the contract provides for only payment of services, ask if there is a designated repair shop or if you can go anywhere.
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Step 4
Ask about the process when you do need repairs. Do you just take the car in to be repaired and then submit a bill for reimbursement? Most likely, you will need to notify the dealership before making any repairs. What if you have a dispute over whether a claim is covered under the warranty? Is there a claims administrator whom you can contact or just someone at the dealership? Know exactly what your recourse is.
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Step 5
Research the dealer’s reputation as well as the auto repair shop the dealer uses. Ask for references. Also check your local Better Business Bureau to see if there have been any reported problems.
