Comparing a manufacturer's warranty and a vehicle service contract
It is normal for new vehicle owners to get confused about an auto warranty and a service contract, but they should learn the differences between the two, as they protect vehicles at different points in their lifespan. Image source: learnmotorskills.com As dictated by law, the manufacturer’s warranty comes with the purchase of a new product. It is the company’s de facto promise that the vehicle is free of defects. And if there are issues that may have occurred during the design or production of the car, the manufacturer will cover the repair or replacement of needed parts. Understandably, a manufacturer’s warranty will only last for a set period and once it expires, the entire cost of resolving a car breakdown will be shouldered by the owner – unless he purchases a vehicle service contract. For this reason, a service contract is also sometimes called an extended warranty. Service contracts can be bought from the manufacturer itself. But there ar...