Regardless if it’s a new or used car, purchasing your own car can be a huge investment. With this, it’s crucial to ensure that you’re covered in case your car needs maintenance and repairs due to unresolved damages or sudden equipment failure.
At times, car purchasers don’t actually secure extended warranty until they need the program. You may believe that extended protection is only practical until something needs to be fixed immediately to prevent further damage and additional costs.
Extended Warranties: A Definition
Extended auto warranties, also known as vehicle service contracts, are a backup plan for customers who prefer to extend the coverage plan of their purchased cars. The coverage usually begins when the manufacturer’s warranty expires; however, there are times when the two may overlap.
Vehicle service programs may be offered by your manufacturer or dealer. However, there are also extended warranties that are provided by independent dealers. A third-party car warranty is quite complex compared to your manufacturer’s warranty contract; nonetheless, this doesn’t imply that this type of program is difficult to understand.
Moreover, an extended auto warranty may minimize the financial stress, particularly if you own a model from an unreliable brand. An extended contract can stabilize the expenses from repairs and even for emergency roadside assistance. This program is an optional plan that you can secure ahead to help lessen certain auto repair and expenses. Additionally, the extended warranty program may differ in length of time, coverage of auto components, and price.
If you’re still in doubt whether or not you must prioritize an extended auto warranty, consider the following reasons below.
1. Security After The Dealer’s Warranty Ends
While most cars have factory warranties from the dealer, these are usually bound by certain limits, such as the miles, years of ownership, or the limited number of repairs. With this, you may have to avail extended warranties to secure your car and not leave it unprotected for a long period of time.
With this in mind, talk to your dealer directly about this concern and educate yourself with the terms and conditions of your extended car warranty. You can also opt for better coverage that suits your requirements or preferences.
Additionally, it’s good to know that there are car manufacturers that supply extended warranty options after your original warranty has expired. The purchase of an extended warranty will keep your car protected in the long haul because you know exactly what parts, repairs, and other essentials are covered.
2. Increase Your Vehicle’s Resale Value
Keeping your car in great condition will definitely increase its resale value, particularly if you do decide to sell your car prior the expiration of the extended warranty. This extended program is commonly transferable for a small cost to the new owner, which implies that you can offer your potential buyer a thorough vehicle security.
Extending your vehicle’s warranty coverage after its original warranty is a recommended decision to secure your investment and increase its odds for resale. Not only can this program shield your car against damages, but this feature can also be appealing and desirable to prospect customers. This may influence them to choose your vehicle over the others.
Furthermore, if you do have plans of reselling your car, routine maintenance is a good practice to consider.
3. Peace Of Mind
Who doesn’t want peace of mind with their car investments? As a savvy car purchaser, it’s imperative that you take responsibility in making sure your car is supported by warranties even by insurance programs. During unpredictable events, you know that you have a buffer to help you secure your huge car investment. If you don’t have any or both of these, how can you prepare yourself for unprecedented road challenges?
Car owners usually avail ahead an extended warranty to keep the worries away about future damages and their corresponding price tags. Nothing is more frustrating than to be without your car soon after the purchase and to be weighed down with pricey repairs. By availing an extended car warranty, future damages and maintenance are covered.
Your peace of mind may be one of the primary perks of extended warranties. This factor may outweigh any other costs.
4. Save Money
Notably, car repairs are expensive. Depending on the severity of the problem, these may cost up to thousands of dollars.
If you own a luxury car whose parts are pricier, an extended warranty can save you money. By being upfront in purchasing an extended auto warranty, these unexpected costs don’t have to be paid out from your wallet. A warranty pays for the repairs in full. This may offer you coverage for years and allow you to economically dispense the payment per month with less to no added fees.
Moreover, bear in mind that the cost of one major repair may be more than what you pay for your entire warranty. Consequently, availing this program allows you to save more cash in the long haul. There are also instances when the extended warranty plan will cost less if you avail it ahead from your car manufacturer.
Whether you decide to avail the extended warranty at the time you purchase your car or not, you still have the option to purchase an extended warranty plan before your original auto warranty expires.
5. Added Benefits
An extended car warranty proves its worth through helping you out in stressful situations. Your extended warranty purchase not only supplies repair and parts coverage after the factory warranty expires, but you also need not worry during instances when you encounter unprecedented mechanical damages and can’t safely drive to the nearest shop. Most full-coverage extended warranty can provide 24/7 roadside assistance.
Furthermore, other additional features of the package include rental car benefits, complimentary towing service, trip interruption assistance, and the like. More often than not, the warranty may cover manual labor costs, too.
Final Thoughts
Extended auto warranties have become a relevant discussion for many car purchasers due to the features and aid they present. Considering their significance, it’s important to be upfront with your car dealer regarding their extended auto warranty packages. In this manner, you may be able to negotiate and talk about your car needs and preferences.