A vehicle service contract (VSC) is an agreement that covers the repair or replacement of specific vehicle components after the original factory warranty expires. Unlike a manufacturer's warranty, a VSC is a separate contract sold by a third-party administrator or the dealer itself.
A vehicle service contract can offer real peace of mind to buyers, especially if you're selling a higher-mileage vehicle or one that's past the factory warranty. VSCs are one of the highest-margin products available in the F&I office.