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On average, most vehicle service contracts cost somewhere between $350 to $700 per year. Total costs range from about $2,000 to $4,000. Before purchasing a vehicle service contract, you should consider how much you would plan to spend on repairs without one to determine whether it would make financial sense for you.
The price of a service contract is usually based on the car's make, model, condition, as well as the contract's coverage and length. The initial price can range from several hundred dollars to more than $1,000. In addition, you may be required to pay a deductible each time your car is serviced or repaired.
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.
Most often, Service Contracts include details such as deadlines and payment agreements. Contracts also usually define the work to be performed and what process needs to take place if changes need to be made. These are legal agreements and can be challenged if needed.
It includes vehicle specifications, diagnostic and repair procedures, parts diagrams, and special tools required. c. Because many technical changes occur after the service information is published, manufacturers provide technical service bulletins (TSBs) to update the information.