What does service contract issued mean on Carfax?
Sometimes referred to as an extended warranty plan (though not officially a warranty by legal definition), 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.
What are the basic terms of a service contract?
The following list includes the key provisions to look for when entering into a service agreement, including: payment, scope of services, amendment, termination, liability insurance, confidentiality, IP ownership, and choice of law/dispute resolution.
What is the difference between a vehicle service contract and an extended warranty?
One important area in which an extended warranty differs from a vehicle service contract is what it covers. VSCs cover routine maintenance services such as tire rotations or oil changes. Extended warranties cover the costs of repairs in the event of a breakdown, which are often docHubly more expensive.
Is a service contract the same as a warranty?
Service contracts are sometimes called an extended warranty, but theyre not a warranty as defined by federal law. Theyre sold by car manufacturers, dealers, and independent companies, you can buy them anytime, and prices and coverage vary widely.
What is the difference between warranty and service contract?
A manufacturers warranty typically is included in the purchase price when you buy a new car, but used cars might come with some type of warranty coverage, too. An auto service contract is a contract to perform (or pay for) certain repairs or services.
What is the difference between extended warranty and service contract?
One important area in which an extended warranty differs from a vehicle service contract is what it covers. VSCs cover routine maintenance services such as tire rotations or oil changes. Extended warranties cover the costs of repairs in the event of a breakdown, which are often docHubly more expensive.
What is the difference between a service contract and a maintenance contract?
Service contracts may include towing, rental and emergency road service Under a maintenance agreement, the maker of the agreement is obligated to perform regularly scheduled maintenance of property, such as regularly scheduled oil changes for an automobile.
Is a service contract required?
You are generally not required to buy an auto service contract when you buy a car. You also are generally not required to buy a service contract to get financing. If the dealer tells you that you have to buy a service contract to qualify for financing, contact the lender to find out if this is true.
What are the two types of vehicle service contracts?
There are two main types of vehicle service contracts: a powertrain warranty and a bumper-to-bumper warranty. A powertrain warranty covers the components that make your vehicle move: the engine, transmission, transfer case, drive axles, and other related components.
What is the difference between warranty and service contract?
A manufacturers warranty typically is included in the purchase price when you buy a new car, but used cars might come with some type of warranty coverage, too. An auto service contract is a contract to perform (or pay for) certain repairs or services.