Extended auto warranty 101
An extended auto warranty is a contract offered by a new car dealer to wrap the new car factory warranty and extend beyond it.
A Vehicle Service Contract, commonly but incorrectly referred to as an “extended auto warranty” or "auto warranty", is sold outside of a new vehicle purchase.
The difference among the three is subtle but important:
- Auto warranty: Provided by motor vehicle manufacturers and included with the original vehicle purchase
- Extended auto warranty: Offered by car dealers
- Vehicle service contract: Must be purchased separately and can be purchased at any time
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