Service Contract is offered on home appliances, electronics, cars, and other major appliances, to give you relief from the hassles of repair. It is just like a purchase of peace of mind with the item whether you make your shopping from a retail store, online store, company outlet, or a catalog, service contracts are usually there as an additional convenience. According to an estimation, about 50% of buyers of new cars, multiple appliances, and used cars purchase service contracts, the cost of this contract varies with the duration, coverage, and type of contract, and usually, the cost ranges from $50 to over $500.
Service Contract – Key Elements
The service contract is synonymous with a warranty that gives you repair and maintenance for a specific period. There is a difference between a warranty and a service contract. The warranty comes under the price of the product as per its label. Whereas for service contract customers have to pay some extra amount of money. It is good to check the offers of warranty before purchasing a service contract. In this way, customers can save a significant amount of money by just purchasing additional coverage on a warranty card. Service contracts usually cover particular parts of the product on some stipulations for repair purposes.
Service contracts usually never cover damages that take place because of failure to maintain the product and misuse of the product. Moreover, it is the responsibility of the consumer to notify the company periodically about the problems to ensure the validity of the contract.
Free Service Contract Template
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The Benefits of Service Contract
The benefits of a service contract are dependent on the type of coverage that it offers. Usually service contract is an option for expensive repairs. Service contracts sometimes become useless when throughout the specified period of the service contract the product works perfectly without any kind of repairing needs. Service contracts save customers from large repair fees as the company offers low rates compared to the market rate. Moreover, a service contract assures the quality of the product even after repair. They usually never charge them for repairing a part of the product within the warranty period. The service contract is a relief and peace of mind for the customers. It helps to avoid tension that what if the product starts malfunctioning.
Things to Consider Before Purchasing a Service Contract
Read carefully the coverage area, terms and conditions, turn-out date, and the cost of the service contract. It is the responsibility of a customer if he/she wants to enjoy great offers as part of their service contract. Not all service contracts are of the same kind and cost. Therefore to understand the nature of the contract one must give it a careful reading. If a customer requires an explanation of any area of the contract, it is important to ask. Also if you notice the absence of any particular area, speak up before it’s too late. It is good to purchase a services contract when the warranty period is over because usually, warranties carry lots of repair offers.
