What is a vehicle service contract

What is a vehicle service contract

What is a vehicle service contract

A vehicle service contract is a basic agreement that covers any expenses for parts and other service products needed in order to repair a car. It is also known as the extended warranty with some dealers, so basically, it is an insurance for every part of your car in case it breaks under normal use.

You can also find the name vehicle service contract as part of the contract you sign when you purchase an extended warranty for your car. The extended vehicle warranty is not mandatory under the law of any of the states and you are not obliged to have such insurance plan, but in many cases it's a smart choice.

The extended auto service plans include a list of all the services and parts that the contract covers for you and your car, so, if you have any problems with benefiting from the warranty you paid for you just have to make sure that part (or service) is included in the list. If it is not listed, you are not entitled to the money for it to be fixed.

Usually, the vehicle service contract is signed for one year, but if you think that you will need to use the services for more time, you can also sign the vehicles service contract for two or maybe even three years, depending on the car you own. Of course, you will probably be required to pay the entire amount up front, but if you are good at negotiating, you can also pay in installments during the next couple of months after the contract is validated.

As a last detail that you would probably be interested in regarding the vehicle service contract we can say that older cars can't benefit from this, or generally pay more than newer ones.

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