No matter what car you buy there’s always one thing you need to take into consideration; Maintenance. Over time certain parts get worn down and need to be repaired and select parts can be quite pricey. That’s where service contracts come in as they cover the costs of certain repairs.
When buying a new car, a service contract will always be on the table at an extra cost of course. With used cars, they can be obtained outside of the dealership.
Service contracts come to an end once a certain criteria has been met. This can either be a certain number of years or kilometres driven whichever comes first.
What do service contracts cover?
Service contracts cover a wide range of mechanical fixes when you purchase a new car or used car.
What exactly it covers varies depending on the manufacturer, but the majority cover the essentials.
Certain manufacturers will also transfer your service contract if you choose to upgrade to your vehicle. This is strictly limited to the same manufacturer for obvious reasons.
Note: Accident damage is not covered by a service contract, that is covered by insurance.
Can you get a third party service contract for cars?
Yes, you can obtain a third-party service contract. Companies like Dynatrade and Bright Spark Auto Repairing offer service contracts outside of the official manufacturers.
Both companies offer 50,000 km packages. The duration in months varies between 36 months (3 years). Both contracts expire when either of the two criteria has been met.
Third-party contracts don’t cover as much but do cover engine oil changes, A/C filter, oil filter, wheel balancing, wheel alignment, brakes, battery and more. Major services aren’t covered.
Prices depend on the make and model of the vehicle, year and mileage.
For example, a service contract for a 2011 Toyota Land Cruiser with 134,000 on the odometer costs between AED 4,200 (inc. VAT) to AED 4,900.
Why is it important to have a service contract?
Anytime a vehicle goes into service, obtaining a service record is key as it not only points out what’s been serviced/repaired it adds value to your car when it comes time to sell it.
Photo credit: myzdegree