Car Law A to Z: V is for Vehicle Service Contract
Often called an “extended warranty”, a vehicle service contract provides some coverage for certain problems that may occur with your vehicle. Unfortunately, I emphasize the word “some” since (1) most vehicle service contracts include deductibles meaning you still have to spend money toward the repairs and (2) many vehicle service contracts are so riddled with conditions, limitations, exclusions, and other terms that some repairs are not even covered. Typically a vehicle service contract is brokered by the selling dealer but is actually between you and the third party company; NOT the dealer.
For obvious reasons vehicle service contracts and warranties are of particular value when purchasing a used vehicle. While the difference may sound subtle it can mean a huge difference in terms of who is responsible for repairs to your vehicle and in what amount. Additionally the difference impacts the question of whether you have the right to seek a refund of your money for a lemon-like vehicle. NOTE: I say “lemon-like” because in North Carolina only a new vehicle can be deemed a lemon.
If you purchased or leased a vehicle and are experiencing ongoing substantial (mechanical or safety; not cosmetic) vehicle problems it is of critical importance to know if you have a vehicle service contract or a “true” warranty. For a review of your situation gather your relevant documents and contact me for a consultation.
- Posted in: Car Law/Vehicle Law/Lemon Law ♦ Warranties and Vehicle Service Contracts
- Tagged: braking, broker, condition, dealer, deductible, defect, electrical, engine, exclusion, limitation, manufacturer, mechanical, powertain, pre-existing, repair, substantial defect, third party, transmission, used vehicle, vehicle service contract, void, warranty