Extended Service Contracts

 A service contract is a promise to perform (or pay for) certain repairs  or services. Sometimes called an "extended warranty," a service contract  is not a warranty as defined by federal law. A service contract may be  arranged at any time and always costs extra; a warranty comes with a new  car and is included in the purchase price. Used cars also may come with  some type of warranty coverage. 

 Auto service contracts are sold by vehicle manufacturers, auto dealers,  and independent providers. If you’re considering a service contract,  shop around so you understand exactly what you’re buying.