what is a Vehicle Service Contract?

Vehicle Service Contract (VSC)

 

Is an optional protection plan you can purchase for your vehicle that helps cover the cost of unexpected mechanical repairs. Often referred to as an “extended warranty,” a VSC is not issued by the vehicle’s manufacturer but by a third-party provider.

 

These contracts cover components like the engine, transmission, electrical systems, and more—depending on the plan chosen. They're especially valuable for people who plan to keep their car long-term and want peace of mind as it ages.

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Vehicle Service Contract Stat's

• The average car repair bill ranges from $800 to $1100, but more serious repairs like a transmission replacement can cost over $4,000.

• The average repair costs rose by 11.6% from the previous year, and the trend is expected to continue upward.

 

One of the biggest advantages of a vehicle service contract is the ability to roll the cost into your monthly car payment, making it easier to budget.

Rather than worrying about an unexpected $2,000 repair, you can pay a manageable $20–$40 more per month and be covered.

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• A VSC helps cover major repairs even when the manufacture warranty wont.

• Average repair costs have risen by 11.6% in the past year.

• Major repairs like engine or transmission work can cost $3,000–$6,000.

• Adding the VSC cost into your monthly payment keeps expenses predictable.

• Ideal for long-term vehicle ownership and avoiding surprise repair bills.