What Does Service Contract Issued Mean on a Carfax Report

If you have been shopping for a used car, you may have come across a term called service contract issued on a Carfax report. This term can be confusing, especially if you are not familiar with the automotive industry. In this article, we will discuss what service contract issued means on a Carfax report and what it entails.

Firstly, it is essential to understand what Carfax is. Carfax is a company that provides vehicle history reports to potential buyers. These reports include information such as accidents, ownership history, and service records. Carfax sources this information from various government agencies, insurance companies, and service centers.

Now, coming to the term service contract issued. A service contract is a type of warranty that covers the cost of repairs or replacement of specific parts of the vehicle when they fail due to normal wear and tear. Service contracts are usually offered by third-party companies and not the manufacturer. It is essential to read the terms and conditions of the service contract to understand what parts and repairs it covers.

When a service contract is issued on a Carfax report, it means that the previous owner of the vehicle purchased a service contract from a third-party company to cover any repairs or replacements due to normal wear and tear. The service contract may have been purchased at the time of the sale or at a later date.

The service contract issued on a Carfax report can be a valuable piece of information for the potential buyer. It indicates that the previous owner took steps to ensure the vehicle was protected from unexpected repair costs due to normal wear and tear. However, it is still important to have the vehicle inspected by a mechanic before purchasing it, as not all repairs may be covered by the service contract.

In conclusion, service contract issued on a Carfax report means that the previous owner of the vehicle purchased a service contract from a third-party company to cover repairs or replacements due to normal wear and tear. While it can be a valuable piece of information, it is still important to have the vehicle inspected by a mechanic before purchasing it. This will ensure that the vehicle is in good condition and any necessary repairs are addressed.