Vehicles are considered eligible if they are located in the current model year plus 9 previous years and if they are less than 150,000 miles long. Used car plans can only be purchased at the time of sale of used cars. Buying an extended warranty or dissolving the insurance is usually not worth it. All new cars in the United States have a warranty covering repairs for a specified period and a number of miles, such as 3 years and 36,000 miles. An extended warranty offers similar coverage beyond these time or mileage limits. Legally, only the original manufacturer can “extend” a warranty. Other suppliers often use the term “extended warranty” to refer to similar products, when they should technically be considered car service contracts and not “guarantees.” An extended warranty, sometimes called a service contract, service contract or maintenance contract, is an extended warranty that is offered to consumers in addition to the standard warranty for new items. The extended warranty can be offered by the warranty manager, distributor or manufacturer. Extended warranties cost an additional and for a percentage of the retail price of the item. Occasionally, some extended warranties, which are acquired for several years, state in writing that in the first year, the consumer still has to deal with the manufacturer in the occurrence of malfunctions. For example, what is often promoted as a five-year extension guarantee is in fact only a four-year guarantee. Most vehicle service contracts are sold to car dealerships at the time of the sale of the vehicle[9] although other suppliers offer them outside the dealership, often at lower prices.

Simply put, a service contract is a promise to pay for certain repairs or services on your vehicle. However, there is still a lot of confusion about what a vehicle service contract is and how it is related to the concept of an “extended car warranty”. Frequently used conditions for a car service contract include used vehicle warranty and extended car warranty. However, these are slightly imprecise sentences, as there are marked differences between an automatic warranty and a service contract. We hope to clarify the differences between a car warranty and an extensive service plan with the following information. This is where an automotive service contract comes in. When it comes to your vehicle, you only want the tranquility that comes from knowing that you are protected in the case of a covered car repair. But since so many different terms are used to describe very similar products, it can be difficult for consumers to understand everything. On the basis of the Civil Code of Quebec and the Consumer Protection Act, each trader is responsible for guaranteeing the legal guarantee of a product. This legal guarantee protects the consumer: deliberately hidden malfunctions, defaults that could not be easily noticed at the time of purchase, guarantee that the purchased item can be used for declared uses and finally guarantee a reasonable life expectancy on the basis of the price paid.