Legal insights and tips from the veteran Attorney of 40 years.
USED AUTO REPAIR CONTRACTS
The used vehicle buyer or the owner of a vehicle out of factory warranty is being bombarded with advertising, mailings, telephone solicitations and dealer pressure to buy an auto repair contract.
Be aware of the following:
- The majority of contracts have an arbitration clause that denies you the right to the court system if the company doesn’t fulfill its promises.
- Arbitration is an expensive process and could cost thousands of dollars.
- Auto repair contracts that are financed with your purchase of a new car carry commissions to the used car lot of up to 50%. What is really going to be left to pay for repairs?
- When your vehicle breaks down, the dealer will tell you that you have to deal with the warranty company as he has no control. He is not your local agent.
- You will be dealing with a company on the phone or email - that’s not good.
- The vast majority of auto repair/warranty contracts fo not provide for a rental vehicle. You can be negotiating with the company for weeks.
Beware, read and re-read the contract carefully - don’t rely upon what they tell you.
Remember, if you agree to arbitration you have limited your legal recourse and tied the hands of your attorney to any contract.
For a meeting with one of our lawyers, call our office in Corbin at 606.528.5001. Personal injury and bankruptcy clients are entitled to a free initial consultation. We maintain flexible office hours to accommodate your needs.
Please Note: David Smith, Marcia Smith are independent attorneys with individual areas of practice.