What is a service agreement when buying a car?

Assuming that you're asking about an extended service contract rather than an agreement that covers routine maintenance, this would be a contract that provides specific repairs and other benefits for mechanical problems that are not covered by a vehicle's warranty. You pay X amount of dollars for the contract, and an insurance company agrees to cover certain repairs over a specified number of miles and time period.

Rick Popely: Ask.Cars.com

December 25, 2012