Service Contract or Extended Warranty: Which is It?


When buying a new car consumers are often asked by the dealer if they want to purchase an “Extended Warranty” The dealer claims that this extended warranty provides bumper to bumper coverage after the original factory warranty expires. It is understandable that many consumers purchase these “Extended Warranties” thinking they will be protected from having a lemon vehicle if problems arise after the factory warranty is over. Unfortunately, this belief is not true.

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