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What’s the Difference Between a Vehicle Service Contract and a Vehicle Warranty?

Buying a new car is an exciting time. However, there is a lot of terminology associated with it that may or may not be familiar to you. It is important to know what is what, especially when you are putting down a lot of money for a car. It can be easy to assume a vehicle service contract and a vehicle warranty are the same thing, but there are some key differences.

What Is a Vehicle Service Contract?

A vehicle service contract needs to be acquired by the driver separately from the warranty. This item is generally sought after the warranty has expired. A driver can purchase this in order to cover the cost of getting a replacement part, essential repairs, or anything else that might be needed. Every vehicle service contract is different, so make sure yours has the coverage you require. It is a good idea to get this contract in order to receive peace of mind. Generally, these contracts do not cover damage that occurred as a result of an accident.

What Is a Vehicle Warranty?

A warranty is usually something you get when you purchase your vehicle. They generally state that if anything within the parameters of the warranty occurs within a given amount of time, then you can get your car fixed at no additional cost to you.

Are Both Needed?

The warranty you get upon purchase of your vehicle will only be viable for a certain amount of time. It may expire after a couple years or after you reach a certain number of miles. Your vehicle may still need repairs or component replacements after the warranty has expired. This is where the vehicle service contract comes into play. It provides you with essential coverage so you can still easily get your car repaired when necessary. It is generally preferable to get this contract before your warranty expires because you can often get better deals. This is due to the fact that if you can show your vehicle is in good shape, then contract providers will be more likely to invest in you.

Pay attention to the warranty you receive with your car. It could be expiring soon, and you want to ensure you have a vehicle service contract in place before it expires so you do not have to go a single day without being protected. If something happens to your vehicle after the warranty expires, you will be incredibly thankful you have your vehicle service contract.

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