Clear The Confusion With Vehicle Extended Warranties
If you are like many Acadiana consumers an extended warranty company wanting to sell you a service contract on your vehicle has contacted you recently. You could also be shopping for a new or used car or perhaps a new refrigerator and encouraged to buy an auto service contract or extended warranty.
Auto service contracts have become increasingly popular as a way to provide consumers a means to deal with unforeseen vehicle repair problems. But before signing on the dotted line, the Better Business Bureau urges consumers to be sure they understand the terms of the contract and know who is responsible for providing the coverage of future repairs.
According to the Federal Trade Commission, an auto service contract is a promise to perform (or pay for) certain repairs or service. Sometimes called an “extended warranty,” a service contract is not a warranty as defined by federal law. A service contract may be arranged at any time and almost always costs extra; a warranty comes with a new car and is included in the original price. This separate and additional cost distinguishes a service contract from a warranty.
The BBB offers this advice: Read the Fine Print, Know What You’re Really Getting, Shop Around, Consider the Cost of the Product and ask yourself bottom line, are they worth it?
For more advice you can trust log on to www.bbb.org or give us a call at 337-981-3497.