Every manufacturer offers a "bumper-to-bumper" factory warranty limited by time and/or miles. In most cases, the factory warranty will cover the repair or replacement of most vehicle components should they fail under normal operating conditions. In addition, some manufacturers offer a "power train" warranty that will, for a longer period, cover the failure of a limited number of parts that are lubricated by oil.

What are VSAs?

Vehicle Service Agreements, also known as extended warranties, provide coverage by extending the manufacturer's warranty on a vehicle to as much as 100,000 miles. Basically, if your vehicle were to break down after the regular warranty has expired, the VSA kicks in and pays the cost of parts and labor for covered mechanical breakdowns on new or used autos at any repair facility in the U.S. or Canada . VSAs offer nationwide protection and are available for both new and pre-owned vehicles. Additional benefits may include towing and roadside assistance, rental car reimbursement, lost key/lockout assistance, tire service and more depending on the plan availability.

Is a VSA For You?

If you are wondering whether to purchase the VSA now or later, consider that after the standard warranty expires, VSA costs may increase and some coverage may no longer be available. In other words, your VSA may cost more at a later date and actually cover less. Buying sooner rather than later may save you money in the long run. However, this can vary so ask your credit union or dealership for more information and if they offer VSA to members.