(Tallahassee, FL) February 13, 2009 – With hundreds of auto dealership closures nationwide – and more poised to close this year, the Service Contract Industry Council wants to assure consumers that service contracts from these dealers are viable and consumers should feel confident purchasing them during Presidents’ Day sales and beyond.
“If a consumer has a service contract from a dealership that is closing or has gone out of business, the first thing to do is contact the dealer directly or the service-plan administrator whose name is located on the contract paperwork,” said Timothy Meenan, SCIC executive director. “Service contracts are covered by the motor-vehicle manufacturer and in most cases repair service is transferable to another dealership.”
Vehicle owners rely on service contracts (sometimes referred to as extended warranties) to pick up after the manufacturer’s limited warranty expires, usually after three years or 36,000 miles. Service contracts also can cover essential yet costly-to-repair systems not covered by the manufacturer’s power-train warranty, such as air conditioning, power windows, electronics, and navigation.More...