Doesn a service contract cover the same items as a warranty?
• A: Service contracts cover the repair of certain car parts or problems. These contracts are offered by manufacturers, dealers, or independent companies. They may or may not provide coverage beyond the manufacturer’s warranty. Remember that a warranty is included in the price of the car. A service contract costs extra. If you buy a service contract from the dealer within 90 days of buying a used vehicle, federal law prohibits the dealer from eliminating implied warranties on the systems covered in the contract. For example, if you buy a car “as is,” the car normally isn’t covered by implied warranties. But if you buy a service contract covering the engine, you automatically get implied warranties on the engine. These may give you protection beyond the scope of the service contract. Make sure you get written confirmation that your service contract is in effect.
