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Service Contracts
Q. What is a service contract?
A. A service contract specifically covers car repairs and maintenance
for a set period of
time. Manufacturers, contract companies, insurance companies, and car
dealers offer
service contracts.
Q. Should I purchase a service contract on my automobile right
away?
A. If you buy one at all, you should consider waiting until your
warranty period expires.
After all, why pay extra for duplicate coverage?
How a Service Contract Differs from a Warranty
Unlike a warranty, a service contract may not come from the manufacturer.
Service
contracts are optional and expensive, and often, coverage overlaps the
warranty
protection. Also, a service contract often contains more limitations and
exclusions than a
warranty, may require you to pay a deductible fee, and might not cover
all parts and labor
or routine maintenance. If a service contract is available on a used car,
the appropriate box
must be checked on the Buyers Guide.
Finally, if you believe that your service contract has been breached,
in addition to any
state remedies available to you, you may be able to sue under the Magnuson-Moss
Warranty Act, and recover your attorney's fees and court costs, as well
as your damages.
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False and Deceptive Repair Practices
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The Mechanic's Lien
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