Sometimes called an "extended warranty", a service contract is a promise to perform (or pay for) certain repairs or services. Although technically not a "warranty" as defined by federal law, service contracts may be arranged at any time and always costs extra. Warranties, on the other hand, ONLY come with a new car and are included in the original price. Vehicle service contracts are popularly referred to as "extended auto warranties" or "extended warranties". Use of the term "extended warranty" or "warranty" on this site is intended to refer to vehicle service contracts and not manufacturer's warranties.
4/30/2010 6:33:33 PM
Rated 3.8. Votes: 5
As the U.S. auto industry attempts to rebuild its reputation, commercials that promise warranties are becoming more and more commonplace. The common promise is "10 years, 100,000 miles," which sounds pretty good. But don't be fooled: only full bumper-to-bumper coverage will completely protect you against the costs of a repair bill.
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