Separate the products
A warranty and a separately purchased service contract are different. A used car may have warranty coverage; an optional service contract can cost extra and cover different items.
Look for limits
Check covered components, exclusions, deductibles, claim authorization, and where repairs can be done. Ask what maintenance records must be kept and who handles a claim.
Compare the extra cost
Look for overlap with existing coverage. Ask about cancellation terms and whether the product cost will be financed. Save the contract and receipt with the vehicle paperwork.
Does “extended warranty” always mean a manufacturer warranty?
No. The phrase is often used for a service contract. Read who provides it and what it actually covers.
Go to the official source
Requirements and lender terms can change. Use the source below for current details.
FTC: Auto warranties and service contracts