The Difference Between Vehicle Service Contract & Auto Warranty

When the time comes that your vehicle is coming to the end of its factory auto warranty, it may be that you find yourself trying to find a way to keep your car covered against the ominous threat of the cost of repairs. If this is the case for you, then know that you have options; however, the trouble is determining how you will make the right choice to fit your needs and budget. 

We all know that if something stops working, the car often happens that the factory warranty has expired when this occurs. If this happens, it will leave you on the hook for the repair costs. For some, this situation may mean needing a ride to work or taking the bus until they can afford the repair costs. It can be essential to determine the best action to take when deciding if you should get an extended auto warranty or a vehicle service contract. So, let’s go over these options below.

What is an Auto Warranty?

The vehicle manufacturer is where an auto warranty comes directly from, and it can have a lot of different meanings. The longevity of extended car warranties can differ, but they often range from three to five years. Auto warranties offer mileage in a limited amount, which is applied to them. Typically that is 60,000 to 100,000 total miles on a vehicle. A dealership will commonly sell an extended warranty as what is known as bumper to bumper coverage; they may also choose to offer less coverage, which will only cover the powertrain components. 

This fact is even more true for any used vehicle. Rarely will auto warranties be available for a car that is outside of its factory warranty. Be sure that you review any paperwork carefully if you have an extended auto warranty to see how long it is suitable for any exclusions on the coverage and the type of coverage you purchased. It is essential to know that any after-market modifications can potentially void a vehicle’s warranty. So if you are buying a used car that has had changes or plan on making any modifications yourself, it is crucial to keep this fact in mind. 

What is a Vehicle Service Contract?

While an extended car warranty is quite similar to a vehicle service contract, there are some key differences. Actually, a lot of individuals confuse the two of these because of their similarities. The manufacturer does not provide Vehicle Service Contracts; instead, they are purchased through a dealership or an outside company. The majority of Vehicle Service Contracts will offer between 3 and 7 years of coverage from the date you buy them. 

Vehicle Service Contracts also often have longer coverage terms in comparison with extended car warranties. Mileage plans are also available, with some offering 200,000 miles or beyond of coverage. One of the most common similarities of Vehicle Service Contracts and Auto Warranties is that the coverage often varies. Be sure to read your contract and see the exact length of time your coverage is good for, what exclusions the coverage may have, and what type of coverage you purchased. 

What is the difference between an extended car warranty and a Vehicle Service Contract?

Most consumers will not notice that there are many differences between these two options. Often, less coverage will be offered from a Vehicle Service Contract as the vehicle ages. Contrary to the last fact, extended warranties will not be offered by many dealerships for any vehicles outside the factory warranty. 

Both plans’ costs will vary based on the length of time the coverage is offered, the type of vehicle, or the type of coverage being offered. While both of these plan types are accepted at dealerships, an extended warranty is only available from the same manufacturer that provided the warranty. A Vehicle Service Contract typically can be used at any ASE certified repair facility or at any dealership. 

Vehicle Service Contract Benefits with Complete Car 

The best benefit that Vehicle Service Contracts offer is their freedom of choice regarding what repair shop you want to work with. Instead of having only to be able to use specific repair shops, you can choose the local mechanic you trust. Even better, it helps you when you are traveling by ensuring that you are not enslaved to the technicians at the manufacturer dealerships. 

Another benefit that Vehicle Service Contracts have over auto warranties is their variety in selection for parts. With extended warranties, your choices are limited to solely the manufacturer’s parts. The ability to have more options for parts will also make your wallet happier, as it can be rather expensive using the manufacturer’s brand. 

The final benefit that Vehicle Service Contracts hold over auto warranties is their vast range of options when it comes to options for protection plans. Complete Car has several different coverage levels that offer several affordable plans within each level instead of having a limited number of extended warranty coverage levels that come from the manufacturer. This fact will allow you to discover a more customizable plan that can protect your vehicle. Here at Complete Car, we offer extensive coverage with our Vehicle Service Contracts at prices you can afford. Give us a call today or contact us through our website for a free quote that meets your needs!

Published On: October 10th, 2020Categories: Blog

Buy Direct &

up to
On Dealer Prices

Get a Free Quote


Leave A Comment

Related Posts

If you enjoyed reading this, then please explore our other articles below:

Back to the Garage