- 1 What is Extended Car Warranty?
- 2 Manufacturer’s Warranty vs. Extended Car Warranty
- 3 What exactly does an extended car warranty cover?
- 4 Is it mandatory to buy an extended car warranty?
- 5 How much do extended car warranties cost?
- 6 What are the risks of not buying an extended car warranty for your car?
- 7 Extended car warranty Is It Worth?
- 8 How Long Does manufacturer Warranty Exist?
Extended car warranty Is it Worth? – Few car buyers are aware that they need to do their research before purchasing an extended car warranty, yet they spend a significant amount of time researching the best car brands and reading about ways to get a good deal at the dealership. . .
Usually, consumers overpay for their extended warranties, or do not invest in one, due to misinformation. Many extended auto warranty companies charge consumers more in benefits than they receive, as consumer reports surveys have noted in the past. People are often duped into buying a bad extended warranty because of the lack of transparency when it comes to car warranties.
To help you make the most informed decisions when choosing coverage, we have collected information about extended auto warranties and better options like Vehicle Repair Protection subscriptions.
What is Extended Car Warranty?
The warranty is a contract between you, the vehicle owner, and the vehicle manufacturer. In general, the manufacturer will repair or replace any necessary parts affected by a factory defect for a determined period. In general words Extended car warranty
Manufacturer’s Warranty vs. Extended Car Warranty
The manufacturers warranty (or OEM warranty) almost always comes with a car you buy. Whatever brand your car is (for instance, Chevrolet, GM, BMW, Mercedes, Audi, Chevy, Ford or Toyota), it is the manufacturer who provides the warranty.
There is a set mileage limit in most of these contracts that last two to three years. Ford, for example, offers bumper to bumper coverage 4 years / 46,000 miles on its Warranty. It’s usually necessary to take your vehicle to the dealer for repairs.
Extending your auto warranty or a vehicle service contract means extended protection for a longer period of time than what your manufacturer’s warranty offers. Dealerships sell them, but you can also buy them from independent companies, that are not affiliated with your car manufacturer.
It may be much more difficult to select a manufacturer’s warranty than a company and plan that will meet your needs. Independent companies have many other advantages, including lower prices, monthly subscriptions rather than long-term contracts, and fewer restrictions on where you can get repairs.
There are various types of coverage available under the term “extended warranty,” but technically these are called vehicle service contracts. To be considered a “warranty,” a service must be provided by the product’s original manufacturer.
What exactly does an extended car warranty cover?
In general, there are three basic types of extended car warranties and they cover different parts of your car:
|Bumper-to-bumper coverage is a type of comprehensive extended warranty that generally covers all parts and systems of a vehicle in the event of a mechanical failure. This will exclude “wear items” (eg, windshield wipers, tires, wheels, routine maintenance, etc.)|
|Powertrain coverage is a type of extended warranty that generally covers only the engine, transmission, driveshaft, differentials, and axles of a vehicle (essentially all of the engine components that turn the wheels) in the event of a mechanical failure.|
|Corrosion / rust coverage is a type of extended warranty that generally covers premature deterioration of a vehicle’s sheet metal.|
Your vehicle is also protected with additional coverage such as key replacement, tire replacement, and technology coverage (navigation, Bluetooth, audio systems, etc.).
Additionally, some warranty providers offer helpful services like 24/7 roadside assistance and repair shop assistance, which means that the warranty provider deals directly with the repair shop without you having to pay the bill up front or negotiate prices. Despite three out of four Americans being nervous about dealing with the repair shop, this is a great incentive for extended auto warranty customers.
Is it mandatory to buy an extended car warranty?
There are no laws requiring extended car warranties as there are for car insurance. However, they can make a huge difference when it comes to protecting your wallet. It is often purchased to cover the cost of repairs, which tend to be unexpectedly large.
According to a AAA survey, 33% of Americans would have to go into debt to cover a sudden car repair. . . Because of the current state of the economy, it is very likely that this number has increased since the survey was conducted. Consequently, an extended warranty can save a lot of lives. By paying for repairs on your credit card, using your credit card as a payment option, or borrowing from family or friends, you can keep your car running and on the road.
How much do extended car warranties cost?
Extended warranties are priced according to five factors:
- Car Age: The age of your car will affect the price of an extended car warranty.
- Car Mileage – Vehicles with high mileage (80,000+) are more likely to require repairs, so this could raise the price (note: some extended warranties do not cover vehicles with high mileage).
- Car Make / Model: As luxury brand automobiles tend to cost more for parts and repairs, extended car warranties are usually more expensive.
- Different levels of coverage are offered by extended auto warranties. Generally, the more parts / repairs you cover, the more you will have to pay.
- The place where you purchase your extended warranty is usually the most important factor in the price you pay. A warranty that should cost much less could be overpaid in an industry with no price transparency as well as big margins. A warranty should cost no more than $ 2000.
What are the risks of not buying an extended car warranty for your car?
The two biggest risks of driving without an extended car warranty are:
- Failure to get necessary repairs (this can lead to major mechanical problems and accidents), and
- paying huge repair bills when necessary repairs need to be made.
Between $500 and $600 is the average auto repair bill in the United States.
In the end, having coverage when things fail can prove valuable for many people. With a low monthly flat fee, you will be able to maintain better financial control and protect yourself against paying a large amount at one time.
Extended car warranty Is It Worth?
Avoid salespeople who try to pressure you into buying overpriced warranties on facilities like “This offer is only available today” or “We will take $300 off your down payment if you buy in the next hour! ” These are just tactics used to encourage you to buy one right then and there. There are options available to you, so research them as much as you can. The purpose of an extended car warranty is to make your life easier, not the other way around. There are three key ways to determine whether or not an extended warranty is a good investment:
- Don’t rush into it.
A warranty extension that is bought too soon is of no use. You should consider buying one before the manufacturer’s warranty expires. Don’t be influenced to buy immediately after buying the car from the dealership.
- Request a written quote.
A company that lacks transparency about its pricing and coverage is hard to trust. Companies that offer extended auto warranties dishonestly don’t disclose what part of your payment is applied to coverage in order to charge higher prices. Many will not give you an easy-to-compare quote or will try to force you to buy on the first call.
- Be sure to read the fine print.
Putting your trust in an extended warranty seller blindly is not a good idea. Online, you will not be able to see the deductibles, hidden fees, or up-front costs of a contract. Be sure to read the fine print carefully for details such as annual mileage limits, how many miles are covered, and whether you can cancel and/or get a refund.
How Long Does manufacturer Warranty Exist?
The Manufacturer Warranty depend on the various Factors i.e. Car model you choose, Cost of your Car, Whether it is a regular policy or a powertrain, These all factors decide your manufacturer car extended warranties. Most of the manufacturer offer bumper to bumper warranties to the vehicle owners that last for 36 months or 36 K miles whichever comes first, if you have opted for a powertrain car extended warranty That may be last for 5 yeas or 60k miles whichever comes first. You should ask these Things clearly before opting for any policy.
It is always a better option to buy an extended warranty cover for your car before manufacturer warranty cover expire, the extended warranties not only protect your car from accidental costs but also keep your pocket in ease. If you are a heavy driver or drive rashly the extended car warranty can be helpful for you to avoid all the unnecessary expenses. Buying a extended warranty from a reputable extended warranties company can give you best deals as well as more facilities.