An extended warranty, sometimes called a service agreement, a service contract, or a maintenance agreement, is a an add-on option that customers consider when purchasing a new or used vehicle.
Extended warranties are some of the most popular F&I products available to vehicle buyers. When someone purchases an extended warranty, they safeguard themselves against repair and maintenance costs after the standard warranty’s expiration date. As a car gets older and starts to have more maintenance problems, an extended warranty may pay for itself, as it can cover the costs of various repairs.
Besides covering the costs of more standard repairs, extended warranties also protect you from more catastrophic damage to your car. An extended warranty can save you a significant amount of money in repairs. Even if you never get in a major accident or have to pay for major repairs, an extended warranty can give you peace of mind by ensuring you never have a major, unexpected cost.