Q: I was shopping for cars last week and got very confused. Some of the vehicles had extended warranties, some had service contracts available, while others were listed “AS IS – NO WARRANTY”. What is the difference? – K. Donohue, Greensboro, NCA: Great question. A warranty is very different than a service contract. A warranty is generally included in your purchase and has no additional charge. A service contract is generally purchased by the customer and is offered through a third party administrator. Under the Magnuson-Moss Act, “service contract” means a “written contract to perform, over a fixed period of time or for a specified duration, services relating to the maintenance or repair (or both) of a consumer product.” If you buy a vehicle and the Federal Buyers Guide is marked “AS IS – NO WARRANTY”, Caveat emptor (Latin for "Let the buyer beware").
You will find the dealers warranty/service contract information (or lack of) listed on the Federal Buyers Guide. It is a Federal Law that each vehicle display this document. If this document is not in clear view, ask the dealer to provide it for you. If they can’t provide it quickly…RUN!
ABOUT THE AUTHOR – Tracy Myers has spent the past 15+ years trying to change the landscape of the car business and the bruised reputation of car salespeople all over the country. Tracy is the owner of Frank Myers Auto Maxx (Winston-Salem & High Point, NC) and Uncle Frank's Auto Approval Center (Winston-Salem, NC). He is a Certified Master Dealer, the National Quality Dealer of the Year, one of top 28 dealerships in the Nation, and one of the top 3 dealerships to work for in the United States. He is the author of "Eight Keys to a Better Car Deal" and the best selling book "Car Buying Secrets Exposed - The Dirty Little Secrets of a Used Car Dealer", available at Amazon.com. Tracy is a Christian business owner whose goal is to run his business "By The Book." Visit Frank Myers Auto Maxx on the web at: frankmyersauto.com
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