Here’s How an Extended Car Warranty can Help
According to a survey by Consumer Reports, 55 percent of car owners who purchased an extended warranty didn’t end up using the warranty for repairs during the lifetime of the policy. An extended car warranty is an optional plan that you can purchase to help pay for the cost of repairs your vehicle may need. Before you decide that you do or don’t need an extended warranty, there are a few things to know, such as expenses that they can or cannot cover.
1. Should you buy an extended warranty?
Buying an extended auto warranty may seem like a good idea, but these are usually very high-priced and often stay unutilized. In case the warranty doesn’t cover the repairs, it is reduced to a cost that brings no financial benefits for the buyer. According to Consumer Reports, about 55% of the respondents never to have used their warranties, while only 25% showed an interest in buying it again. Moreover, costs incurred by the car owner for repairs was also found to be less than warranty expenses.
2. Benefits that may not be in an extended warranty
An extended warranty can give you peace of mind, but it may not cover everything you hoped for. Most extended warranties will not cover amounts for parts that the original manufacturer warranty will provide. So, you need to inquire about the degree of coverage you will be entitled to. An extended warranty will also not cover routine maintenance such as regular oil changes, new brakes, and tires. Even roadside assistance usually entails an additional charge.
3. Extended car warranty benefits
The biggest advantage of buying this vehicle contract is money-saving. You get to save whenever your automobile needs costly repairs that are covered by the warranty. So, you do not have to pay for the entire bill. You only pay for deductibles, and the warranty provider takes care of the rest.
The warranty will give you ample peace of mind, knowing that you have money to pay for basic repairs. It is similar to a car insurance policy which we must have, even if we do not need to use it. You have to pay for it initially, but it will be highly beneficial for you in case you need to use it later.
4. Things to know before buying an extended car warranty
- It is best to buy it when you buy the car, or else you may forget about it, and some plans may impose restrictions on renewal.
- It is worthwhile only when you are keen to keep your car after its standard warranty expires.
- You could get an extended warranty from a manufacturer or dealer, but you must know who is underwriting the policy to be able to understand its value.
- Some warranties may expire when the car is sold off, so, it is best to get one that can be transferred to the new buyer, as this increases its sale value.
- Some warranties may state that repairs have to be done at the dealership where it was bought. It may not be suitable for everyone. Therefore, you need a warranty which offers some location options.
- Find out what extended car warranty benefits the contract covers and what it does not cover before committing to it.