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ABOUT AUTO SERVICE CONTRACTS

According to national data, car, truck and motorcycle owners are keeping their vehicles for longer periods of time. A motor vehicle service contract provides an efficient and economical way of maintaining a vehicle for long-term ownership, particularly after the manufacturer’s limited warranty expires. In addition, the increased complexity of components and analytics in today’s motor vehicles has greater financial implications when failure occurs.

WHERE TO PURCHASE

  • Most service contracts for motor vehicles are sold at automotive dealerships at the point of sale.
  • Consumers can also purchase an auto service contract from the dealer or independent service contract providers after buying a car.
  • Service contracts are available for both new and used vehicles.
  • The vast majority of service contracts are sold and/or administered by reputable, licensed companies that abide by current regulations, adhere to high principles of customer service, and are protected by financial reserves and/or insurance.
  • A list of motor vehicle service contract providers who are members of the Service Contract Industry Council is available here.
  • The SCIC urges consumers to be cautious when dealing with providers who use unsolicited mass marketing techniques, such as direct mail and telemarketing (e.g., “robo-calls”).

BENEFITS CAN INCLUDE

  • Comprehensive bumper-to-bumper coverage available, including everything from the exhaust system to the electrical system, the engine to the gas tank, the heater to the air conditioner, the leather seats to the sunroof, etc.
  • Pre-qualified, professional auto technicians to perform the work, even on road trips for business or pleasure.
  • Protection against being stuck with repeated repairs.
  • Discounted maintenance costs amortized over time to avoid huge, unexpected and draining repairs bills.
  • Access to replacement vehicles during repair downtime.
  • Twenty-four hour technical assistance.
  • Roadside assistance, such as towing.
  • Convenience and time savings.
  • Resale value may be enhanced.
  • Transferability to a new owner.
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