Vehicle Service Contracts
formerly known as Auto Warranties
A service contract is a promise to perform (or pay for) certain repairs or services. Sometimes called an “extended warranty,” a service contract is not a warranty as defined by federal law. A service contract may be arranged at any time and always costs extra; a warranty comes with ONLY a new car and is included in the original price. A vehicle service contract used to be referred to as an “Extended Auto Warranty.”
The separate and additional cost distinguishes a service contract from a warranty.