So I recently bought a Kia Soul from a used car dealership in 2017, after recurring problems with my other car. The soul now has about 42 km inside. I received a letter in the letter regarding the warranty saying, "Our records show that you have not contacted us to activate a vehicle service contract for your vehicle. If you are buying a used car, look for the Buyer`s Guide which is displayed on the side window. The FTC requires the guide for all used cars sold by dealers. It indicates whether a service contract is available. It also indicates whether the vehicle is sold with a warranty, only with implied warranties or "as seen". Auto service contracts are sold by automakers, car dealers and independent suppliers. If you`re considering a service contract, research to understand exactly what you`re buying. Guarantee. If the manufacturer`s warranty for the used vehicle is still in effect, you may have to pay a fee to get coverage, which will become a service contract. However, if the distributor covers the costs of the manufacturer`s fee, the coverage is considered a guarantee. Normally, the price of the service contract is based on the manufacturer, model, condition (new or used), coverage and duration of the contract.
The cost of the advance can be between one and several thousand dollars. In addition, you may have to pay a deductible. Find out if the deductible is calculated per visit or per repair. It can make a big difference. Let`s say you have a $100 deductible and your car needs to repair three parts. With the deductible per visit, you pay $100. If you have a deductible per repair, you pay $300. Find out if the car service contract is entered into by an insurance company. This is necessary in some States.
If the contract is supported by an insurance company, contact your state insurance commission to ask for the solvency of the company and if complaints are filed. For risk aversion, it seems that one pays for the renewal of the manufacturer`s warranty (technically an extended service contract), if only for safety. However, third-party providers who sell extended warranties are notoriously shady – and often pretend to be legitimate providers, only to be proven fraudulent months or years later. . . .