Svc contract meaning
What is SVC contract?
Sometimes referred to as an extended warranty plan (though not officially a warranty by legal definition), a vehicle service contract is a paid plan that helps cover the costs of any repairs needed once the limited warranty has expired. As the car ages, the likelihood of it needing repairs rises.
What are the benefits of a vehicle service contract?
7 Benefits of Vehicle Service Contracts
- More comprehensive coverage than a warranty. …
- Coverage options are available for multiple budgets and needs. …
- Deductibles can start at $0. …
- You choose who repairs your car. …
- Coverage is available for older cars or those with extensive mileage. …
- Trip interruption assistance.
How do auto service contracts work?
A vehicle service contract is a paid plan that helps cover costly car repairs and takes effect once the new vehicle warranty has expired. … Instead, they mirror the factory warranty coverage but a third party covers repairs. Sometimes, they provide additional coverage that isn't included in the manufacturer's warranty.
What is vehicle maintenance contract?
A service contract, also called an extended warranty, is a contract that covers certain vehicle problems or repairs after the dealer's or manufacturer's warranty expires. You might find one of these offered through an auto manufacturer, car dealer or warranty administrator.
Can I cancel a service contract after signing?
There is a federal law (and similar laws in every state) allowing consumers to cancel contracts made with a door-to-door salesperson within three days of signing. The three-day period is called a "cooling off" period.
Can you cancel a service contract on a car?
A: Yes. California law provides that you can cancel your service contract at any time, and receive a refund. … The cancellation or administrative fee cannot exceed 10% of the price of the contract, or $25.00, whichever is less.
Is a service contract the same as a warranty?
Warranties are included in the price of the product. … A service contract is sometimes called an “extended warranty,” but service contracts are not warranties. A service contract can help you fix or maintain your product for a specific time — like a warranty. But, unlike a warranty, service contracts cost extra.