A loaner is not part of the basic warranty. The repair will be done at no charge, but the owner is responsible for a rental if they want one. That is one of the perks of a service contract. As I used to explain to my customers, the money you didn't spend on a contract will now be spent on a rental. The dealer has some "wiggle room" for loaners under the TAP (transportation allowance program). Those are limited funds and after they are used by the dealer they are gone until the next month/quarter. Some of the higher brands (ie Lincoln) have different programs including loaners. If they do use TAP, it varies by case.....how many miles on car, if customer performs service at the dealership (loyal customer) etc. If you look at it objectively, a service contract is just like insurance. You hope you never need it, but it sure is nice when things do happen. A personal note.....no matter what the brand, I would never buy a "non-manufacturs" warranty (meaning after-market, credit unions etc).