If you're buying a new or used car, the salesperson might try to sell you an auto service contract to help protect against unexpected or expensive repairs. While a service contract might sound like a good idea, it could duplicate coverage you have through your manufacturer’s warranty. Learn the difference between a warranty and a service contract, what’s covered, and how to steer clear of scams. Every car today rolls out from the showroom with a standard feature – a warranty. It's a written assurance, which states that the manufacturer will replace or repair any faulty part if it fails.