When you make a car purchase, warranties can be offered on both new and used vehicles. Extended warranties can provide piece of mind when something goes wrong or the car requires general maintenance after the regular manufacturer warranty has expired. Although it is entirely optional, extended warranties are generally only available to get from the dealer at the time the vehicle is purchased.
Although the car is covered for basic maintenance for one or two years after purchase, the extended contract will last up to six years and can cover regular required work, as well as check-ups and other dealer services.
The cost of an extended warranty varies by make and model of the vehicle purchased and it isn't always required depending on what vehicle you get. In order to make sure you avoid purchasing something that you don't need, it is important to research all facts and figures beforehand.
Things to remember:
- Is the cost worth it?- It's best to check the value of what a repair would be outside of the default contract and compare it to the excess required if a claim needs to be made. If you are paying more for the excess charge than what you would if you got a regular garage to repair your car, an extended warranty is clearly not worthwhile.
- Is the vehicle being purchased prone to breaking down and needing repairs? If it is, an extended warranty may be a good idea as it cold work out cheaper than continually seeking out the assistance of a garage.
- Are you getting the best offer possible?- There may be other dealer services that offer a lower price for the same thing or potentially offer additional perks. Don't go for the first offer you see, take your time and see what else is available. Indeed, a little bit of looking around could result in more satisfaction.
- Be sure to read all the small print.- If something happens to your vehicle, you need to know you're covered. If you don't know what you're covered against, then you may end up with large bills you're unable to easily repay.
- You are able to get extended warranties on a used vehicle. However, it important to take note that these extended warranties may cost more due to the age of the vehicle- It is possible that it will have additional restrictions and less coverage.