First, let’s examine some of the many benefits you will receive once you have one.
- An extended car warranty is essentially a safeguard in the event of unexpected major auto repairs becoming necessary. Your warranty can make sure that you don’t have to deal with undue stress about those repair costs.
- Many extended car warranties are transferable to future owners, thereby increasing the resale value when that time roles around. Purchasing a used care with an active extended car warranty brings the buyer additional peace of mind, and the transfer fee is typically quite small.
- Besides repair and resale appeal, many extended warranties include things like car rental discounts, roadside assistance (towing, battery jumps and more), lockout services should you lose your key, and even trip interruption benefits if your car breaks down far from home.
What is NOT covered by an extended car warranty?
Although such warranties usually cover most major component repairs, they are far from being as inclusive as a new car “bumper to bumper” warranty. For instance, many extended warranties tend to exclude the following items: windshields, light bulbs or headlights. They also often fail to cover what the auto industry refers to as “wear items” such as tires, shocks/struts and brakes. One way to check out the differences between extended warranty providers is to carefully read over their exclusions.
Where do I look to find some extended warranties so I can comparison shop?
While the majority of car dealerships these days do offer extended vehicle warranties, as you research this you’ll discover that buying a warranty directly from the warranty provider is almost always the most affordable way to go. However, just to be fair, know that if you purchase a warranty from your car dealer, then they will handle filling out all the paperwork for you and then the manufacturer directly pays the dealer. Also, dealership purchased warranties tend to allow the car owner to get their vehicle repaired at any dealership in the country that sells the same make of car, while many warranties purchased outside a dealership do not. In any case, it’s an excellent idea check out all the pros and cons, and while doing so, be sure you visit a variety of warranty providers and compare not just their prices, but exactly what they cover, too. Here is a great resource that compares extended auto warranty providers – AutoWarrantyResources.com
Does my vehicle really need an extended warranty?
The ideal candidate for a warranty is someone who is on a fixed income and cannot afford to be surprised/stunned/shocked by unexpected, expensive repair costs. If you fit into this category, and you intend to keep your vehicle beyond the point covered by the original manufacturer, then purchasing an extended warranty could be an extremely wise investment. It’s always good to do your homework before purchasing, just like anything else. Specifically you should look into things such as the average repair costs and reliability track record of the vehicle you are planning to buy. There are a number of consumer websites about vehicles where you can determine such things. Remember – just because a vehicle is ranked on such sites with having low repair costs (on average) and/or an excellent reliability record is no guarantee when it comes to your specific vehicle. But over time, the compiled statistics on a particular model do tend to establish a trend. So it’s smart to check all of this out prior to purchase.
Additionally, if your car is currently under the manufacturer’s warranty that covers the next few years, there’s really no need to spend money on “double coverage.” The more prudent choice could well mean waiting until just before that manufacturer’s warranty is about to expire to purchase an extended plan.
Are there other ways I can save money on an extended warranty?
Absolutely! One easy way to check this out is to search online for coupon codes. These days, you can find such codes for virtually any product or service. It’s just a matter of being willing to invest the time to research it, and to make note of which one(s) offer you the best deal.
Additionally, many auto warranty providers offer senior discounts, and/or first time caller discounts. If they don’t mention this right up front, then don’t be shy about asking a few questions about extra incentives to buy from them rather than their competition.
Just like any other type of insurance coverage, you’re going to see that some are more comprehensive or more expensive than others. If you and your vehicle are a good match for the purchase of an extended car warranty, let common sense be your guide. Select one that has a reasonable deductible, is a good fit for your budget, and includes a clause that permits the warranty to be transferred to a future owner. Then you’ll have all your bases covered. Putting in your due diligence with comparing warranty benefits can amount to keeping your car running longer at lower repair costs as well as boosting its resale value years from your purchase date.