An extended car warranty will come in handy in covering the cost of specific repair jobs on your vehicle once you reach the manufacturer’s warranty. Still, it might not be suitable for everyone out there. It’s important to remember that an extended warranty typically comes with a high price tag and doesn’t necessarily cover everything that might go wrong in the future.
Those who go for an extended car warranty might not use it at all. In that instance, an extended warranty is simply an expense without any financial return.
Therefore, the majority of those who have an extended warranty isn’t able to use it.
Additionally, the cost of repairs among car owners who utilize the warranty is less than its cost.
Before deciding whether or not an extended car warranty is suitable for your specific needs, there are several factors to carefully consider, especially if they can help you save money in the longer run.
Here are essential facts you need to know about an extended car warranty:
What You Need To Know About An Extended Car Warranty
The primary purpose is to save money once there are issues or problems with your vehicle. On the manufacturer’s warranty, the company itself is going to cover the expenses under certain settings. In most circumstances, if there’s a factory defect, the factory warranty is applicable.
An extended car warranty works in the same way, but usually covers a broader scope of issues.
It simply means that you don’t need a factory defect to save money when you have an extended warranty.
It’s true if you’ll go for a third-party extended warranty over a manufacturer’s extension contract.
The best aspect of several extended car warranties is the level of customization they provide.
You can quickly look around for various options, especially third-party providers, to check their plans and those you’re eligible for.
Additionally, it’s the best way to look for options within a specific budget range if you have financial constraints when buying an extended warranty.
Is An Extended Car Warranty Worth It?
Although it can be enticing to get an extended warranty plan as a form of protection against unforeseen repair costs, you should consider the pros and cons.
What Are The Pros?
If you’re wondering if you can save money when you have an extended car warranty, it’s one of its most significant benefits.
You can save money if your vehicle requires an expensive repair job that’s part of the contract.
Instead of paying for the entire repair bill out of your pocket, you’ll only cover the deductible while the warranty provider pays for the rest as long as the issue is an element in the service contract.
When you have an extended warranty, it can also give you peace of mind as you won’t have to worry about how you’ll pay for a repair job.
What Are The Cons?
Sadly, an extended warranty has its share of drawbacks to consider.
- Usage. The majority of car owners who have an extended warranty never use it. If they use it, the repair job price is often less than the cost of the warranty.
- Coverage. An extended warranty doesn’t usually cover everything that might end up with issues. It would be best to meticulously read the fine print to determine what it does and doesn’t cover so you’ll not end up surprised by a repair bill you thought will be covered by the warranty.
- Overlap. When the coverage overlaps the warranty of the manufacturer, you might be settling for a warranty you already have without any cost.
- Service requirements. In most instances, you’re only allowed to have your vehicle repaired at specific repair facilities.
The Price Of Extended Car Warranties
If you’re going to get one from a dealer, they’ll ask if you want to include an extended warranty. However, dealerships usually mark up the cost of extended warranties.
If you’re eager to get one for your vehicle, negotiate with the dealer for a reasonable price or look over independent providers in your area.
Coverage options are likely to vary, and the price depends on the coverage of the plan, model, and make of the vehicle.
However, it’s important to note that the upfront cost of the warranty can range from USD$1,000 up.
In some cases, you also need to pay a deductible. For example, for every repair or warranty service, you’ll end up with deductibles.
It’s crucial to determine how deductibles work for your specific plan. If there’s no solution for an issue in one trip to the repair facility, you might end up paying for several deductibles for a single repair job.
If you’re planning to get an extended car warranty for your vehicle, it might help you save money, but it all depends on your specific needs. You should decide if the peace of mind that an extended warranty provides is worth the price tag. Make sure that you’ll do your homework to avoid potential scams.