Consumer Car Buying Advice Blog

The Service Contract Industry Council offers tips on purchasing an extended auto warranty for any car loan including terrible credit auto loans

Answering your questions

People with bad credit sometimes ask us about auto service contracts they can get from dealers that specialize in bad credit auto sales.

We can usually help them out with these questions because for the last twenty years we’ve been working with them here at Auto Credit Express. Answering this and other questions regarding issues such as repossession and buy and pay here dealers are a big reason we created our web site: so individuals in a wide variety of credit situations can use it to research those topics as well as today’s – what to ask about auto service contracts when financing a bad credit car.

SCIC

Recently, the Service Contract Industry Council issued a press release that contained some valuable information for consumers thinking of purchasing an extended warranty (really a service contract) for a new or used car. Here are some excerpts from it:

Consumers Obligations:

•    Read the contract provisions carefully and understand all coverage and exclusions
•    Keep detailed records, including contract paperwork, receipts, and maintenance records
•    Adhere to all manufacturer’s recommendations for routine maintenance, such as oil and spark plug changes.  Failure to do so could void the contract.
•    Identify the name of the service contract provider on the contract.  If a contract does not list an administrator’s contact

information, contact your state Department of Insurance or the Better Business Bureau to determine if the company is authorized to do business in your state.
•    Check if the plan’s administrator is a member of the Service Contract Industry Council (www.go-scic.com)

Consumer Tips:

•    Most service contracts cover normal wear-and-tear and may fill in coverage gaps in the manufacturer’s warranty for up to 7 years and/or 100,000 miles
•    In many states, service contracts come with a “free look” period, usually 30 days.  If a consumer believes they acted impetuously, the contract can be returned for a full refund during this period.
•    Do not buy a service contract if the provider will not supply you with a copy of the contract terms and conditions prior to purchase.
•    Be alert to service contract providers who use unsolicited mass marketing techniques, such as direct mail and telemarketing (e.g. “robo-calls”).

The Bottom Line

Here at Auto Credit Express we want you to successfully complete your bad credit auto loan. By purchasing an extended warranty when it makes sense and by following the tips offered by the Service Contract Industry Council you’ll have a better chance at making that happen.

You should also know know that at Auto Credit Express we specialize in matching applicants with bad auto credit to dealers that can offer them their best chance at getting approved for no credit auto loans.

So if you’re ready to reestablish your car credit, you can start now by filling out our online car loans bad credit application.

Tags: auto service contracts, Bad Credit, extended auto warranty, no credit auto loan

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