Whether you choose to buy a vehicle service contract from the used cars San Antonio selling dealer or an outside company check out the company beforehand to be sure it is a legitimate one.
Purchasing an auto service contract
With the cost of new vehicles rising every year, here at Auto Net Financial we realize that most of our applicants, both regular and credit-challenged, that fill out our bad credit auto loan application and get approved by one of our dealers for car loans with bad credit will decide that it makes more sense to go with a 2 or 3-year-old used car.
Coming to this conclusion makes a great deal of financial sense for a couple of reasons. For one, the quality and durability of used cars San Antonio vehicles, as a whole, is at an all-time high. In addition, buying a one, two or three-year old vehicle helps you avoid the 15 to 30 percent depreciation that will most likely take place during these years.
We do recommend, however, that if you are purchasing used cars San Antonio, whether it is with conventional financing or with a bad credit car loan, that you seriously consider purchasing a service contract that will cover the entire length of the loan.
There are a number of reasons for buying one, no matter what your credit score, not the least of which is that it may help you avoid large, unforeseen car expenses – one of the biggest reasons used cars San Antonio buyers are forced into repossession.
Buy from your used cars San Antonio dealer
We also encourage you to buy a warranty from the selling dealer. By doing this, you’ll know where to go and who to see if you have problems with your car. You’ll also have someone to go to if you encounter issues with the warranty company.
Take it from experience: there is nothing more frustrating than having your car break down due to a problem with a supposed “covered” system and then having little or no recourse if the warranty company turns down the repair claim and having no one else to turn to.
Alamo City service contract scams
There is a very good chance that as soon as you buy a used car (even if you purchased a service contract from the dealer), you will be inundated with cards, letters and even phone calls from companies that “specialize” in used car service contracts. Many of these “warranty” companies will do anything to get you to part with your money. This is how they got your name and how the scam works:
These companies buy lists that contain the names of consumers who have recently taken delivery of a new or used car. These lists are then divided up and given to telemarketers who call these new owners in order to try and sell them a service contract. The problem is that the sales pitch may contain information that is not always accurate. Among other things, customers have been told that:
1. Their current warranty is getting ready to expire, even if that isn’t true
2. The company is selling them an extended warranty, which is not accurate (they are selling a service contract which does not “extend” the new car warranty and, in fact, may even overlap an existing warranty).
3. The caller represents the selling dealer, when in fact they are calling on behalf of an independent service contract company.
4. The caller represents the manufacturer, which is also not true.
5. The service contract is a “bumper to bumper” warranty just like the factory new car warranty, which it is not.
6. If they’re not fully satisfied with the service contract, they will get a full refund. In many cases, when the customer calls back to cancel the contract and get a refund, they’re unable to contact anyone at the company.
If you are contacted
If you’re contacted by one of these companies, ask for a name, address and phone number. Remember, if you registered with the Federal Do Not Call List, they shouldn’t even be contacting you in the first place. Contact your Better Business Bureau as well as the Consumer Affairs department of your state and ask if the warranty company is licensed to do business in the state.
If you receive a solicitation in the mail, be sure to contact the Better Business Bureau before you contact the company, to be sure it is legitimate.
In summary
Don’t spend your money on any type of service contract until you’ve done your research. In most cases you should first consider buying your warranty from the selling dealer. That way, if you have any issues, you’ll know who to contact (licensed local dealers also must adhere to your state’s consumer protection laws). Remember, as part of the research process, you can shop around for cost before you buy from the dealer to make sure their service contract is priced fairly.
For more car buying tips and answers to your questions on bad credit car financing, visit our web site at www.autonetfinancial.com.
Finally, if you have bad credit and you’re serious about reestablishing your car credit, you can begin the process by filling out our online bad credit car loan application now.
