Warranty vs. Vehicle Service Contract: What’s the Difference?

Amanufacturer’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 about3 years/36,000 miles.

• Powertrain Warranty: Covers major components like the engine and transmission, often lasting5-10 years/60,000-100,000 miles.

Anextended warranty is an optional protection plan you can purchase from the automaker or dealership toextend the original warranty. 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.

AVehicle Service Contract (VSC) is different from an extended warranty, even though people often confuse the two. A VSC is offered bythird-party providers and covers repairsafter 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.

Key Takeaway: AVSC is a separate protection plan that provides coverage beyond the manufacturer’s warranty with greater flexibility.

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

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

• If you wantaffordable, flexible coverage after your warranty expires, aVehicle Service Contract is a smart choice.