Auto warranty vs. vehicle service contract

Modified on Sat, 15 Jul 2023 at 07:50 PM

American Auto Shield vehicle service contract vs auto warranty 101 customer service rep computer stack of books

Auto Warranty vs. Vehicle Service Contract (VSC) 101

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. 

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. 

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