An extended warranty is like insurance for your car, safeguard for future expenses that you don’t know yet. It is also known as a vehicle service contract, not compulsory to buy it. It helps you to pay certain repairs to your car after the manufacturer’s warranty expires sometimes they both can overlap.
Most of the warranties don’t include some parts that original warranty covers, the amount depends on what is included in the warranty you are purchasing, carefully read before buying. Routine maintenance like oil change, new tire, new brakes, etc. are not included in extended warranties. Coverage varies according to the cost of the warranty. Generally, the upfront cost of a warranty can range from $1,000 to $3,000 or more.
What do extended warranties cover
- Mechanical Breakdown
- Non-wear & tear parts & component failure
- Powertrain/Engine damage
Are extended warranties on used cars worth it?
Buying a used car from a dealer doesn’t come with the manufacturer’s warranty which means you’re solely bearing the costs which incur on the repair or any damages on the vehicle.
Investing in a used car that has no manufacturer warranty means acquiring additional coverage by paying extra fees.
Pros and Cons of an extended warranty
We all know uncertainties can happen anytime but we can secure our money by acquiring an extended car warranty. Before you invest the money, let’s have a look at the pros and cons.
Customization of warranty
The warranties are provided by the manufacturers which are in terms of mileage and time limits. Extended warranties offer a wide variety of products and services which cover more than the standard manufacturer warranty.
If you’re getting bumper to bumper warranty in the manufacturer warranty but the lesser powertrain warranty, acquiring an extended warranty tends to increase the shorter coverage.
Covers huge repairs
The vehicles have more complexity which is filled with high technology and more equipment. The accidents lead to major destruction in the vehicle and repairing them can acquire huge costs. Nowadays, cars and trucks come as more reliable but the failure in technology costs dollars to repairs which means purchasing an extended warranty can save you dollars.
Documentation and Paperwork is handled by dealers
Dealerships offer extended warranties as they hold strong relationships with the service providers but they come as more expensive. Dealers handle all paperwork as manufacturers make the payment prior to the third party service provider. These extended warranties enable the user to get repair their car repaired at any vehicle and they provide them OEM parts and accessories.
Extended warranties don’t include which can affect your car. At the time of buying no one read the terms and conditions which define what warranty covers and what not? Before you buy one ask the person what damages it will cover under the warranty.
No use of extended warranties
Consumers purchase extended warranties but never use them as sometimes the repair and maintenance cost less than the warranty.
Limited service centers
With extended warranties, you can only fix your vehicles at certain repair facilities.
The coverage period of the extended warranty overlaps with the manufacturer’s warranties as the new car comes with the manufacturer’s warranty.
How much-extended warranties costs?
When you buy the car from a dealer they’ll ask you to buy an extended warranty. Here you can negotiate with the dealer to get the price down on extended warranties or else you can buy it from third-party providers.
Extended warranties come with different coverage options which depends on the make and model of the car. The cost of the extended warranty which can range up to $1,000 to $3000 more. If you acquire the warranty with an auto loan leads to an increase in the interest amount.