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.