101 on Warranties and Service Contracts for New Cars

When you buy a new car, the auto salesperson might encourage you to enroll into an auto service contract. This contract will help you save on repairs and other maintenance costs associated with your new vehicle purchase. Make sure you know all you have to know about Skoda services to get the service you need and maintain your vehicle. There are different types of coverage available for each dealer or car manufacturer, which requires you to even more thorough about your options.
What is an Auto Service Contract?
An auto service contract is often tied with the contract you sign to buy new Skoda cars. This service contract serves as the promise from the dealer or manufacturer to provide repairs or services at little or no cost to you. It is more commonly referred to as extended warranty. It must not be confused with an actual warranty that is mandated with your new vehicle purchase. The latter is included in the purchase price of your new vehicle and might be available for a limited time, such as six months after purchase.
Know Your Options
Even new Skoda cars will require maintenance work to be done. Hence, it is important to know your options when buying an auto service contract from vehicle dealers and manufacturers.
A service contract from the dealer is the most basic option available for you, the vehicle owner. But this isn’t required by financing companies or lenders so a lot of vehicle buyers overlook them. Make sure you validate the loan to ensure that it is not included in the purchase price without your knowledge.
In terms of the length of the auto service contract, it largely varies according to the dealer. It is not always the same with the manufacturer’s warranty. Most manufacturer’s warranty on a new vehicle will be based on mileage or a specific period of time (whichever comes first). It is also important to look into who backs the contract. Is it your dealer or the auto manufacturer? You need to identify the contracting party so you can get the benefits you deserve from the contract.
Coverage
When you buy Skoda cars with Skoda services contract, it is important to know the coverage of the service as well. It is important to investigate into the type of services you can enjoy and not just assume they are included in the service. Common repairs like changing the brakes and clutches are included, but more extensive services might not be (such as tire replacement). Some contracts will stipulate that only mechanical breakdowns will be covered and there might be exclusions. It is important that you know beforehand as you could potentially save a lot of money from Skoda services.
Car maintenance is one of the most costly aspects of buying a new vehicle. If you can get servicing included in the package, you can save a lot of money. If it is available in your package, make sure to take advantage of the free repair and services.

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