When It Comes to Service Contracts, Does the Dealer Always Tell You the Truth?

Buying a vehicle is exciting, but the conversation often shifts quickly from the car itself to the “extras” the dealer wants you to consider. One of the most common add-ons is a Vehicle Service Contract (VSC). Dealers present these contracts as a way to protect you from unexpected repair costs—but do they always tell you the whole truth?

The reality is that dealerships are businesses, and service contracts can be highly profitable for them. That doesn’t necessarily mean they are misleading, but it does mean you need to approach the conversation with a healthy dose of caution. Some dealers emphasize only the positives and avoid discussing the limitations. For example, they might highlight “bumper-to-bumper” coverage without explaining the exclusions, or they may imply the contract is backed by the manufacturer when it is actually a third-party product with very different terms.

Another common area of confusion is price. Dealers can set their own markup, and it’s not unusual for a service contract to cost hundreds or even thousands more than the same coverage purchased directly from a reputable third-party provider like XPRessvsc.com. Unfortunately, many customers never realize there are alternatives outside the dealership that can offer better coverage at a lower price.

So how do you separate truth from sales pitch? First, always ask for a copy of the actual contract—not just the summary sheet—before you sign anything. Second, take the time to compare coverage with other providers online. Finally, remember that you don’t have to decide on the spot; a reliable company will allow you to review terms and ask questions.

A vehicle service contract can absolutely provide peace of mind and financial protection, but only if you understand what you’re buying. Don’t assume the dealer’s word is the final authority. Do your homework, compare options, and make sure the contract you choose—whether from the dealer or a trusted third-party like XPRessvsc.com—is the right fit for your needs and your budget.