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Auto Warranty vs. Vehicles Service Contract (VSC) 101

What's the difference?

Auto warranties are provided by motor vehicle manufacturers, come with the product, and are included in the purchase price.

 

Vehicle service contracts, on the other hand, are agreements that are separate from the contract or sale of the product. They are separate either because they are made some time after the sale of the product, or because they cost the customer a fee beyond the purchase price of the product.


When are vehicle service contracts purchased?

A vehicle service contract, commonly but incorrectly referred to as an "auto warranty" or “extended auto warranty”, is sold outside of a new vehicle purchase and can be purchased at any time.