Monday, May 29, 2006

Refunds: Part-4

Extended Warranties or Service Contracts -Dealers may offer an extended warranty or service contract for an additional cost. Extended warranties, however, are expensive. It is one of the most profitable aspects of car sales. If you are interested in a service contract, remember that cost and coverage vary greatly and may be subject to negotiation. A copy of the terms and conditions of the service contract must be provided by the dealership. You are entitled to a full refund, less any claims paid, within twenty days of the mailing of the service contract or within ten days if the contract is delivered at the time of sale. Typically, consumers are better off dealing with a nationally known service contract company. Providers of service contracts or extended warranties must be registered with the YOUR State Insurance Department.


Refunds: Part-3

Invoice price- is the manufacturer's initial charge to the dealer. This usually is higher than the dealer's final cost because the dealers receive rebates, allowances, discounts, and incentive awards. Thus, the Attorney General objects to its use in auto advertising because many consumers think that it reflects the dealers' actual costs. In general, the invoice price should include freight which may also be reflected as destination fees or delivery charges.