Many new cars—and some used or certified pre-owned ones—come with a limited warranty, which is covered in the purchase price of the vehicle. A limited warranty usually lasts for a certain amount of time or a certain number of miles and covers defects or some repairs and sometimes even routine maintenance. But what happens when the warranty expires? Typically, the owner would be 100 percent liable for any repairs needed from that point on.
This is where a vehicle service contract comes in. A vehicle service contract is a paid plan that helps cover the costs of any repairs needed once the limited warranty has expired. As the car ages, the likelihood of it needing repairs rises. The biggest benefit of obtaining a vehicle service contract is the potential savings on unforeseen repairs for a car that is no longer covered by a factory warranty.
Our Finance Director, Greg Benedek, explains the benefits in the following video.