The Automobile Service Agreement
How to Create Your Own Service Agreement
Before you start putting your own Automobile Service Agreement together, you’re going to need a few things. The first is a reliable and trustworthy mechanic (yes, they do exist). The whole point of a service warranty or agreement is that the provider actually provides the service agreed upon. That means you have to deal with someone you know and trust.
If you’ve been driving for a while (especially older cars that need work often) you probably already have a mechanic who’s work is reliable and affordable (the reason you’re creating your own vehicle service agreement). If you don’t, get some referrals from people you know and trust. This process works best with mechanics with small shops (maybe even a one-man operation), however, you want to avoid fly-by-night mechanics. Remember, the key word when dealing with a mechanic is reliable.
Next, you need to know exactly what services you want and will pay for. Are you looking for Bumper-to-Bumper coverage or merely a scheduled maintenance program? How about things not normally covered in typical Extended Warranties like tune-ups and oil changes? You can pretty much negotiate whatever you want, as long as your mechanic agrees to it, and you’re willing to pay for it.
You (and your mechanic) need to decide how parts will be covered (who pays for replacement parts, hoses, oils, etc.), as well as what’s not covered by the agreement at all. All this will take some honest discussion, which is another reason you need to have a mechanic you know and can talk to. You also have to agree on how and when the mechanic will be paid.
There are things mechanics typically will not want to include in an agreement, so make sure this is understood and agreed to. In fact make sure you have a good understanding of everything that’s expected from both you and your mechanic.
What Should Be Included in a Service Agreement?
Once you and your mechanic have fleshed out an agreement, it’s time to put it all in writing .
As far as a the actual Service Agreement is concerned, there are five basic parts to a Contract to Purchase Services. They are:
1. Identification of the parties involved in the agreement
2. Description of the services to be performed (The Service Level Agreement)
3. Dates the service(s) are to be performed
4. Conditions or Limitations
5. Payment Terms
How do you actually put this agreement together? Why would a mechanic agree to a Service Agreement?
We’ll cover that in Part 3.
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