Prices can range from several hundred dollars to several thousand. What you’ll pay for coverage is usually based on whether a vehicle is new or used, its make and model, what repairs or services are covered, and how long the contract lasts. Ask questions and get answers in writing about It probably won’t help to have a service contract that starts before the manufacturer’s warranty expires. New cars usually come with warranties for a certain number of months or miles, whichever comes first. Or they may try to include them in the paperwork you must review, without discussing them with you, and without your understanding or approval.īefore you buy an auto service contract, compare it to the manufacturer’s warranty that came with your car. Dealers typically mention auto service contracts and other “add-ons” after you’ve spent a long day at the dealership. When you buy a new or used car, dealers or independent companies will often try to get you to buy an auto service contract - which is sometimes called an “extended warranty.” Auto service contracts are optional products and can be expensive. The records will be helpful if you have to use your warranty and show that you properly maintained your vehicle. Keep records of repairs and maintenance like oil changes, tire rotations, belt replacement, new brake pads, and inspections. The warranty company could ask for your maintenance records. The manufacturer or dealer must prove the aftermarket or recycled part caused the damage before they can deny warranty coverage.

If that happens, the manufacturer or dealer can deny warranty coverage for the damaged part and charge you for repairs. A recycled part is made for and installed in a new vehicle, then removed and made available for resale or reuse.īut if someone installs a defective aftermarket or recycled part, or doesn’t install a part correctly, it could damage a part that the warranty covers.An aftermarket part is a part made by a company that didn’t make your vehicle.Your warranty stays in effect if you use aftermarket or recycled parts. And if the warranty says you will get parts for free, the dealer or manufacturer can require you to use parts it chooses. But if the warranty says that the work will be done for free, the dealer or manufacturer can make you use repair facilities it chooses. In fact, it’s illegal for a dealer to deny your warranty coverage because you had routine maintenance or repairs done by someone else. You don’t have to use the dealer for repairs or maintenance to keep your warranty in effect. An auto service contract or extended warranty is not a warranty as defined by federal law, because you buy it separately it’s not included when you buy a car. They typically don’t cover damage that may occur in an accident or normal wear and tear to the vehicle. Some auto service contracts will extend the length or coverage of the warranty that came with your vehicle, and others will cover some maintenance tasks like scheduled oil changes. Contract prices and coverage vary widely. It’s common for a contract to cover your vehicle for a certain number of months or miles. The contract seller agrees to perform (or pay for) certain repairs or services outlined in the contract. A used vehicle might come with some type of warranty coverage, too.Īuto service contracts - sometimes called “extended warranties” - are optional contracts sold by vehicle manufacturers, dealers, or independent companies. A manufacturer’s warranty is included in the price of a new vehicle, and often covers your vehicle for a certain number of months or miles, whichever comes first. Auto Service Contract and Extended Warranty Scamsĭifferences Between Auto Warranties and Auto Service ContractsĪn auto warranty is a promise to fix certain defects or malfunctions during a specific timeframe after you buy a vehicle.Differences Between Auto Warranties and Auto Service Contracts.Identity Theft and Online Security Show/hide Identity Theft and Online Security menu items.Unwanted Calls, Emails, and Texts Show/hide Unwanted Calls, Emails, and Texts menu items.Money-Making Opportunities and Investments.Jobs and Making Money Show/hide Jobs and Making Money menu items.Credit, Loans, and Debt Show/hide Credit, Loans, and Debt menu items.Shopping and Donating Show/hide Shopping and Donating menu items.

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