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Automotive warranty claims are requests made by vehicle owners or authorized service centers to the vehicle's manufacturer or warranty provider for repair or replacement of parts and components that are covered under the vehicle's warranty. [citation needed] Automotive warranty claim involves a lot of processes which may include the warranty ...
An extended warranty, sometimes called a service agreement, a service contract, or a maintenance agreement, is a prolonged warranty offered to consumers in addition to the standard warranty on new items. The extended warranty may be offered by the warranty administrator, the retailer or the manufacturer.
For instance, an auto warranty from a car dealership may be subcontracted and vehicle repairs may be at a lower rate which could compromise the quality of service. At the time of repair, out-of-pocket expenses may be charged for unexpected services provided outside of the warranty terms or uncovered parts.
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A "service contract" is different from a warranty because service contracts do not affirm the quality or workmanship of a consumer product. A service contract is a written instrument in which a supplier agrees to perform, over a fixed period or for a specified duration, services relating to the maintenance or repair, or both, of a consumer product.
Car dealers also provide maintenance and in some cases, repair services for cars. New car dealerships are more likely to provide these services since they usually stock and sell parts and process warranty claims for the manufacturers they represent. Maintenance is typically a high-margin service and represents a significant profit center for ...
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