Upon purchasing a car, one may also be required to avail of an auto service contract to do away with untimely and expensive repairs. Before agreeing into any of it, one should first completely get a grip of both the contract’s terms and the one responsible for supplying the coverage.

The following will help in the understanding of the use of a car service contract and what should be considered before getting one.

Car Service Contract mistaken as a warranty

A car service contract should not be mistaken as a warranty as made understood by federal law even if it is sometimes called “extended warranty”. Similar to a warranty, a car service contract promises to provide or pay for particular services or repairs.

A warranty goes together with a new automobile and comes together with the original price of the car while an car service contract is sold separately and can be arranged for at anytime.

Things to consider in a car service contract:

o Duplication of car service contract with whichever warranty treatment

Before buying any car service contract, try comparing it with the manufacturer’s warranty first. This will avoid shelling out for coverage that may already be provided by the warranty.

o Accountability of car service contract

Check on who is accountable in performing or paying for reparations within the terms of the contract whether it is the dealership, the manufacturer, or an independent company.

A lot of these car service contracts that dealers sell are controlled by companies that are independent or administrators, as they are called. They function as adjusters of claims who authorize payment claims to dealers under service contract. Therefore, any dispute on claims should be discussed or settled with the supervisor.

Once the administrator stops his business, it is a possibility that the dealership may be compelling to execute the terms of the contract. It is also possible that if the dealer runs out of business, the administrator may be the one expected to complete the contract’s terms.

It is imperative to know the credibility of the dealer and/or the administrator. Inquire about their references and verify them. The local or state office for consumer protection, local automobile dealers associations, Department of Motor Vehicles, local Better Business Bureau are good sources of references and public information.

It is also important to know the length of time the dealer or administrator have had in the business. It is also vital to determine if the dealer or administrator has the funding to sustain their contractual responsibilities.

Know if the car service contract has an insurance company that has underwritten it. This is mandatory in some states. If it is so, verify the company’s solvency with the State Insurance Commission and check for complaints that might have been filed against it.

o Prices of Auto Service Contracts

The cost of auto service contracts are usually known through observing the vehicle’s model, make, condition whether it is new or used, the coverage, and the contract’s length. The price ranges from hundreds of dollars to over a thousand.

Over and above the initial charge may be an additional fee to pay known as deductible, every time the car is repaired or serviced. In some auto service contracts, one may pay just one charge for each visit for all the required restoration, no matter how many. On the other hand, other contracts demand the client to pay a deductible for each unrelated repair.

Transfer of cancelling fees may also be asked to be paid once the client decides to sell the car or wishes to finish the contract. Contracts usually decrease the payment for towing services and other related car rental expenses.

o Coverage

Only a few car service contracts treat all types of repair. Typical repairs for parts such as clutches and brakes are usually not coming with the service contracts. If some items are not listed in the service contract, assume that it is not included. An example of this is if the contract indicates coverage on the “drive train” only, it will surely not pay for the alternator which is a component of the electrical system.

Beware of absolute rules that reject or deny coverage for any reason. An example of this is if a part that is covered is damaged by a part that is not covered, no claim will be given.

One my not have full protection even on parts that are covered in the contract. This is possible due to some companies using a “depreciation factor” in calculating the coverage. This primarily means that the contract covers only partial repair or replacement costs if they take into consideration your vehicle’s mileage for instance.

About the author:

Gregory Ashton, your resident automobile enthusiast, bringing to you over 20 years of vehicular passion, and expertise; presents for your approval his insider secrets on selecting, buying, and maintianing the car that is ideal for you. http://www.best-car-buying-tips.com

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(NC)-Be aware of the following:

• Inspect the car in daylight and good weather. Bring someone you trust along to help you make a thorough appraisal;

• Don’t expect perfection in a used car. Compromise on minor problems you can fix yourself, but don’t overlook serious defects;

• Make safety a major priority. Older vehicles may not be equipped with airbags, child safety seats, seat belts, anti-lock brakes or security systems. Determine your locality’s vehicle safety requirements for cars, mini-vans, recreational and sport-utility vehicles and other vehicles before you buy;

• Road test before you commit to buy. If you are not allowed to test drive the car, do not buy it.

• Have a mechanic you know and trust inspect the car thoroughly before you purchase it. Again, if the seller will not allow you to have the car inspected, do not buy it.

For more information on purchasing used cars, and/or just about anything else you can think of, visit ConsumerInformation.ca. It’s a new Web site created by federal, provincial, territorial governments and their partners specifically to provide Canadians with convenient, objective, reliable and current consumer information sources.

About The Author

News Canada provides a wide selection of current, ready-to-use copyright free news stories and ideas for Television, Print, Radio, and the Web.

News Canada is a niche service in public relations, offering access to print, radio, television, and now the Internet media, with ready-to-use, editorial “fill” items. Monitoring and analysis are two more of our primary services. The service supplies access to the national media for marketers in the private, the public, and the not-for-profit sectors. Your corporate and product news, consumer tips and information are packaged in a variety of ready-to-use formats and are made available to every Canadian media organization including weekly and daily newspapers, cable and commercial television stations, radio stations, as well as the Web sites Canadians visit most often. Visit News Canada and learn more about the NC services.

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Real Money-Saving Steps

There are numerous no- or low-cost steps you can take to combat rising gas prices. Most cars can run on regular unleaded - 87 octane. High performance vehicles will usually require 91 octane or higher. Check your owner’s manual to determine the right octane level for your car. It’s also usually written inside your gas lid, door panel, and sometimes right on your dashboard under the fuel gauge. It will say something like “Premium Unleaded Only” which means 91 octane or higher. All gas pumps must post the octane rating.

Gas Cards

Check out gas card offers from gas stations and credit card companies. The can save you an additional 1% to 5% off every gallon or earn you free gas. One of the best cards out there right now can be found http://valueauthority.com/savegas.htm

If you put 20 gallons in your car at $3.00 per gallon, that’s $60. A 5% cash back would save you $3.00 making your effective cost per gallon just $2.85. It’s like getting a free gallon of gas with every fill up!

Drive more efficiently:

— Stay within posted speed limits. The faster you drive, the more fuel you use. For example, driving at 65 miles per hour (mph), rather than 55 mph, increases fuel consumption by 20 percent. Driving at 75 mph, rather than 65 mph, increases fuel consumption by another 25 percent. This is caused by the amount of energy it takes to push your car through the air and the amount of drag created by your cars body.

So if your car gets 25-mpg highway at 55 mph, driving 65mph will drop it down to 20 mpg! Driving 75 mph drops it down to just 16 mpg!

My personal experience with my 98 VW Beetle: I drove to New York at the posted speed limits between 55 and 65 mph. I got about 35mpg and 450 miles on one tank!!! When I drove to Florida the posted speed limits were between 55 - 70 mph. I actually drove about 75 mph most of the way. I only got 27 mpg and about 350 miles on one tank. I lost almost 100 miles distant per tank! I couldn’t believe it.

— Use overdrive gears. Overdrive gears improve the fuel economy of your car during highway driving. Your car’s engine speed decreases when you use overdrive. This reduces both fuel consumption and engine wear. Most automatic transmission cars will have an overdrive button right on the gearshift. Look for a “D” and/or “O/D”. You will see a light on the dash indicating weather it’s on or off. Check your owner’s manual to be sure. If your car has a tachometer, you should be able to tell by watching your engine’s rpm speed on the highway. Buy switching the overdrive on, your rpm’s should drop significantly.

— Use cruise control. For longer trips using cruise control can help you maintain a constant speed and, in most cases, reduce your fuel consumption. Set it to 55 mph on highways.

— Avoid unnecessary braking and acceleration, and improve your fuel economy by 5 to 10 percent. In city driving, nearly 50 percent of the energy needed to power your car goes to acceleration. Go easy on the gas pedal and brakes. “Jack-rabbit” starts and sudden stops are wasteful. Let off the gas early when approaching yellow and red lights, stop signs etc… Most fuel-injected cars will cut off the fuel supply to the engine while you slow down saving you even more gas.

— Combine errands. Several short trips taken from a cold start can use twice as much fuel as one trip covering the same distance when the engine is warm. It takes about 15 to 20 minutes for a car to reach normal operating temperature. Until then, your car is using almost twice as much fuel to keep the engine running!

— Remove excess weight from the trunk. Avoid carrying unneeded items, especially heavy ones. An extra 100 pounds in the trunk reduces a typical car’s fuel economy by one to two percent.

Maintain your car

Keep your engine tuned. Studies have shown that a poorly tuned engine can increase fuel consumption by as much as 10 to 20 percent depending on a car’s condition. Follow the recommended maintenance schedule in your owner’s manual; you’ll save fuel and your car will run better and last longer.

— Keep your tires properly inflated and aligned. Under inflated tires on a car is like running on the beach with no shoes. Car manufacturers must place a label in the car stating the correct tire pressure. The label usually is on the edge of the door or doorjamb, in the glove box, or on the inside of the gas cap cover. If the label lists a psi (pounds per square inch) range, use the higher number to maximize your fuel efficiency. Under inflated tires cause fuel consumption to increase by 6%. — Change your oil. Clean oil reduces wear caused by friction between moving parts and removes harmful substances from the engine. Change your oil as recommended by the vehicle manufacturer.

— Check and replace air filters regularly. Your car’s air filter keeps impurities in the air from damaging internal engine components. Not only will replacing a dirty air filter improve your fuel economy, it also will protect your engine. Clogged filters can cause up to a 10% increase in fuel consumption. Imagine running up a flight of stairs with only using one nostril in your nose to breath.

Gas Cards

Check out gas card offers from gas stations and credit card companies. The can save you an additional 1% to 5% off every gallon or earn you free gas. One of the best cards out there right now can be found http://valueauthority.com/savegas.htm

If you put 20 gallons in your car at $3.00 per gallon, that’s $60. A 5% cash back would save you $3.00 making your effective cost per gallon just $2.85. It’s like getting a free gallon of gas with every fill up!
About the Author

Robert Rogers is a writer in the Washington DC area and specializes in money saving. For More Information - Visit www.valueauthority.com/savegas.htm

Technorati Tags: automotive, autocare, auto care, car care, auto repair