Article: Check service contract out before buying

Before you buy a service contract, experts suggest these steps. Look in Consumer Reports magazine for frequency-of-repair records on various brands of the product you intend to buy. End-of-year buying guides index all articles printed in the magazines for at least the previous two years.

Deal with a reputable merchant and manufacturer. Check out obscure companies with the Better Business Bureau. Don't buy until you get a chance to compare the manufacturer's warranty with the actual service contract, not a glossy brochure. Look for the "buried, operative sentences," which tell when the whole service contract does not apply, such as, "does not cover normal wear and ...

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