An extended warranty is a vehicle service contract that pays for repairs to your car after the manufacturer’s guarantee has expired. Factory warranties on new cars often last a few years, after which the owner accepts responsibility if something goes wrong down the road. You are protected from this danger by purchasing an extended warranty. An extended warranty for a new car can be purchased.
If you’re thinking about whether or not to buy an extended warranty on a new automobile, you might be wondering if it’s a worthwhile investment. The answer is contingent on the type of coverage you require. What is covered by factory warranties and extended warranties, how to select the best coverage for you, and when is the ideal time to buy? Auto warranty specialists from several companies will walk you through it.
Should I buy an extended warranty on a new car?
When you buy a new automobile, you won’t need to utilize an extended warranty right away because the manufacturer guarantee, which is usually included in the purchase price — covers most repairs for the first few years. You may, however, get one for your new car, and here are some of the benefits of doing so.
Is it worth purchasing?
Going or not going for an extended automobile warranty is a personal choice. It will depend on how old your automobile is, how reliable it is, and how well you would cope if your car developed an issue that needed to be addressed.
If any of the following apply to you, you may want to consider purchasing an extended car warranty:
• Your current car’s manufacturer’s warranty is about to expire, and you want to keep your coverage.
• You don’t have enough reserved money in an emergency fund to cover any unforeseen expenses.
• You want to know that if something goes wrong with your car, you’ll be covered.
It’s possible that if you purchase a car warranty, you will never need to file a claim.
This does not, however, imply that purchasing a warranty is a waste of money. You can’t forecast the future or what repairs your automobile will require, so if you have a problem with it, one claim could make the warranty worthwhile. You are purchasing peace of mind when you get insurance.
A car warranty isn’t for everyone, therefore you should think seriously about obtaining one if:
• The manufacturer’s warranty for your car is still valid. Even if you buy a used automobile, this warranty may still cover it.
• You could easily afford to pay for any necessary emergency repairs.
• Your vehicle is thought to be a dependable model with few faults.
• Your car is ancient and/or has a lot of miles on it. These cars’ warranties may have more limitations and exclusions, making it more difficult to submit a successful claim if your car breaks down. In addition, warranties will only cover vehicles up to a particular age.
Advantages of purchasing a new car with an extended warranty
With third-party extended warranties, you have a wider range of repair options. Here are a few advantages of purchasing a new car with an extended warranty:
Manufacturer’s warranties on new automobiles, as well as extended warranties sold by car dealerships, frequently require you to bring your vehicle to specified dealerships for repairs. This means you can’t stick with your regular mechanic—either it’s a dealership or nothing. You can choose which repair facility serves your vehicle through third-party firms.
- Longer protection means you’ll be able to drive for longer.
You’ve just bought a new vehicle and want to make the most of it. Many manufacturer warranties are only good for three years or 36,000 miles (whichever comes first). Your new car will be able to perform at its best for as long as you need it with extended protection.
- The technology in your new car is protected by an extended warranty:
Electronics and computer systems have become increasingly complex as today’s cars have more and more high-tech capabilities. When a technology component fails, locating the issue and having it repaired can be quite costly. One reason drivers purchase an extended auto warranty is to protect their vehicle’s technological components.
Automakers typically sell off-the-shelf warranties policies at predetermined pricing. You can customize an extended warranty purchased from a third-party warranty firm to protect you in areas where the factory warranty does not. To determine the car’s reliability, we recommend consulting Consumer Reports, J.D. Power, and Repair Pal and paying attention to routine repairs, and ensuring that your contract covers them. The cost of an extended warranty can frequently be tailored to your budget, making payments more affordable than a pricey repair.
When should you acquire a new car’s extended warranty?
When you should acquire a new car’s extended warranty is determined by who you want to ensure you. Before the factory warranty expires, most automakers require you to purchase an extended warranty. You’ll have the first few years of ownership to make your decision.
Because we cover new, used, and certified pre-owned vehicles, including those with over 100,000 miles, third-party warranty providers allow you to purchase the warranty anytime you choose.
We recommend purchasing an extended warranty shortly before your manufacturer warranty ends to obtain the best deal and avoid a coverage gap.
Things you need to consider
Consider the following:
• Carefully examine the details of each policy before choosing whether or not an extended car warranty is worthwhile. Because extended warranties might be difficult to comprehend, you must understand what you’ll be paying for before deciding whether or not it’s worthwhile.
• Used automobile warranties often do not provide as much coverage as new car warranties. They may have more exclusions and tougher terms and conditions, so don’t expect your automobile to be covered for every mechanical or electrical issue.
• For example, not all warranties will pay out if a portion of your car that isn’t covered by the guarantee fails and damages a protected part. It is known as consequential loss, and it’s one of the things to keep an eye out for when comparing insurance coverage.
• More comprehensive car warranties will cover more defects, including some wear and tear, but they will cost more. You’d have to decide whether the extra expense is worth it or whether it’s cheaper to pay for any repairs yourself if an issue arises.
• You should also consider a policy’s claims limit, the maximum amount a warranty will payout for repairs, and the excess you’ll have to pay if you file a claim. It can give you an overview of how much you’ll have to spend even if you have a warranty, which can help you determine if it’s worth paying for one.
• It’s also worth remembering that whether or not you have a warranty if you buy a car from a dealer, you’ll still have certain statutory rights under the Consumer Rights Act 2015. If your car is defective, you can return it up to 30 days after purchase. You may be eligible for a repair, replacement, or partial refund after this period has passed.
Where can I get a car warranty extension?
An extended car warranty is available from a variety of sources.
To begin, if you currently own a car with a manufacturer’s warranty, you may be able to extend it for an additional year or more. It will vary per manufacturer, and you may be required to meet specific criteria, such as having your vehicle serviced at one of their locations.
If you buy a used automobile from a dealer, you will certainly be offered a car warranty. These will be of varying lengths, and some suppliers may include a limited warranty as part of the purchase price of your automobile, with the opportunity to extend it for an additional fee.
However, you are not required to purchase a dealer’s warranty. They are not always the best option, and they can be more expensive than plans from independent providers and come with tougher terms, such as the requirement to have your car serviced at one of their dealerships within the warranty period.
If you do decide to get an extended auto warranty, it’s a good idea to shop around online for quotes from several companies to see what each coverage covers, what’s excluded, and how much it costs. It will assist you in determining which warranty is best for you and whether it is worthwhile to purchase.
How soon can I use my extended warranty?
An extended car warranty waiting period is your money-back guarantee. Another reason that companies use the extended car warranty waiting period is for YOUR benefit. You get a full 30 days (sometimes more depending on policy selection) to ensure you have the right coverage.
Does an extended warranty cover the car?
An extended car warranty may aid cover the cost of specific repairs to your vehicle when the manufacturer’s warranty expires, but they’re not for all. While it may appear like a good deal, in theory, extended warranties often come with a high price tag and don’t necessarily cover everything that could go wrong.
Is it a good deal to buy an extended warranty?
When it comes to the long-term cost of automobiles, extended warranties are generally “a bad deal,” according to Gillis. A Consumer Reports survey says that 55% of people who purchased an extended warranty never utilized it. Among those who did use the warranty, the majority saved less on repairs than they paid for the contract.