If you’ve ever bought a new car, you are probably well aware of the “factory” warranty. This is the warranty included by the dealership and covers everything in the car except parts that wear out over time. These warranties can be extremely valuable, but unfortunately, most factory warranties only last for the car’s first 3 years or 36,000 miles. Not a long time at all when considering the life of a car. Luckily, that’s when the extended warranty comes in handy.
Extended warranties are just like the name implies. They offer you coverage after your original warranty has expired. As vehicles today continue to become more complex and technically advanced, the amount it costs to repair them continues to go up! That is why when you’re purchasing a car or taking a second look at a vehicle you already own, it’s important to consider the benefits that extended warranties provide.
- Peace of Mind
Extended warranties offer you an invaluable peace of mind. You can rest easy at night knowing that if something should happen to your car after the factory warranty has expired, you’ll still be covered and will be saving some serious cash. You don’t want to be that guy who ends up having to pay a ton in repairs because he didn’t want to pay for the warranty earlier. And because these warranties extend your mileage limit, you can drive easy instead of feeling like you constantly need to check your odometer.
- Exclusionary Contracts
Some extended warranty services, such as Carchex, offer exclusionary contracts as opposed to inclusionary ones. As the name implies, exclusionary contracts list everything that is not included in the coverage. You should always read your contract carefully. The great thing about these deals is that you know exactly what you’re not getting, and thus also what you are getting! You can read a more detailed review of Carchex at CarWarrantyGuru.com.
- They Act Like a Second Insurance Plan
As you may have noticed, extended warranties act a lot like insurance plans. And for good reason. Many extended warranty services will pay for or reimburse your repair costs in full when you take your car to a mechanic. If you consider this against how much your repairs typically cost you out-of-pocket, it’s easy to see how much money you can end up saving.
Extended warranty services also offer roadside assistance plans. If your insurance company doesn’t already provide you with roadside assistance, it may save you money to get that from an extended warranty plan instead of having to go through a third-party provider just for that one service.
Another beneficial aspect of extended warranties is that they can also provide additional services such as towing your car when it gets stuck or setting you up with a rental.
- 100k Miles Services
As cars are becoming more and more efficient, they are also lasting a lot longer. This is great news for car buyers but also means your vehicle is more likely to live past its factory warranty. There are practically no dealership warranties that cover cars with over 100,000 miles on them. Luckily, there are extended warranty services that do just this. It is especially important to consider having an extended warranty at this time in a car’s life because this is when cars are going to experience more frequent mechanical issues.
Extended warranties are just one of many useful tools to consider having for your vehicle. It’s important to understand their benefits in order to decide if it’s a right fit for you. Just remember, it always helps to be prepared.