A manufacturer’s warranty comes with every new car and is a guarantee from the automaker to cover certain repairs for a limited time. Typically, it includes:

• Bumper-to-Bumper Warranty: Covers most car components (excluding wear-and-tear items) for about 3 years/36,000 miles.

• Powertrain Warranty: Covers major components like the engine and transmission, often lasting 5-10 years/60,000-100,000 miles.

An extended warranty or vehicle service contract is an optional protection plan you can purchase from the automaker or dealership to extend the original warranty or vehicle service contract. However, there are a few considerations:

• Repairs may need to be done at the dealership.
• Coverage might not be as comprehensive as the original warranty.
• Extended warranties can be costly compared to other options.

A Vehicle Service Contract (VSC) is different from an warranty, even though people often confuse the two. A VSC is offered by third-party providers and covers repairs after the manufacturer’s warranty expires. Some advantages of a VSC include: ✅ Customizable coverage options to suit your needs and budget. ✅ Flexibility to choose from a wide range of repair shops (not just the dealership). ✅ Additional benefits such as roadside assistance, rental car coverage, and trip interruption protection.

An extended Warranty or VSC is a separate protection plan that provides coverage beyond the manufacturer’s warranty with greater flexibility.

• If your car still has a factory warranty, extra coverage isn’t necessary yet.

• If you prefer to extend the manufacturer’s coverage, an extended warranty might be an option—but it can be costly.

• If you want affordable, flexible coverage after your warranty expires, a Vehicle Service Contract is a smart choice.

Facts About Warranties or Vehicle Service Contracts:

source: FTC

• Before you buy an vehicle service contract, compare it to the manufacturer’s warranty that came with your car. A warranty or vehicle service contract cover different times. A warranty comes with the car initially and from the manufacturer. A vehicle Service Contract is purchased later to extend some portion of the manufacturer warranty.
• How much it costs; can you pay monthly or all up front for your auto extended warranty?
• The company’s reputation. Does the auto warranty company have bad reviews?
• The length of coverage. How long is your extended car warranty coverage and can you cancel or transfer?
• What’s covered. This is a big problem and the number one complaint of extended car warranty purchasers. Their expectation is for one thing and the company selling offered all levels. When you scale back, you significantly reduce the number of covered parts.
• How you get service. Is this clear in the vehicle service contract?
• Claims. Is there an easy way to file vsc breakdown claims?