The Benefits of New Car Extended Warranties

When it comes to buying a car, you will likely be faced with the decision of purchasing an extended warranty. An extended warranty, which can also be referred to as a service or maintenance agreement, is designed to protect you from future repair costs. Here, we have outlined the benefits of purchasing an extended warranty for your new vehicle, and why this simple purchase could be an extremely wise investment.

The Two Types of Extended Warranties

Extended warranties come in two flavors – those provided by the manufacturer, and those provided by an insurance company. The difference between these is generally the location of repairs. Extended warranties offered by the manufacturer often have you to bring your car to the dealer for services and repairs, while those offered by an external insurance company allow repairs to be done at external locations.

 

When to Buy an Extended Warranty

An extended warranty is usually, but not always, a wise decision when purchasing your new vehicle. It’s important to take a look at typical repair costs for your make and model. If there are a high number of reports of small repairs for a certain make/model, an extended warranty is likely a great investment, and will save you from paying out of pocket for any number of repairs. Also, if unexpected repair costs are higher for your specific make/model, an extended warranty could save you thousands of dollars. It’s important to know your car, and know what to expect should something go wrong down the road.

 

Additional Benefits: 

• Cutting Costs
  With an Extended Warranty, you don’t have to worry when your car breaks down and needs unexpected maintenance—you’re covered! Your wallet will thank you that you don’t have to shell out hundred of dollars because you planned ahead. In many circumstances, the price of a warranty is much more reasonable than the combined repair costs that car owners face.

 

• Increase the Value of your Vehicle
  When you have an extended warranty and you are looking to sell the vehicle, you’re in luck! The warranty is transferrable with the vehicle, and will increase the resale value.

 

• Piece of Mind
  We’ve all heard stories about people getting ripped off when it comes to vehicle maintenance and repairs. Unless you’re a mechanic or have ample experience with car maintenance, chances are that you won’t know exactly what repairs your car needs, or how much that should cost. With a warranty, you have the piece of mind that nobody is overcharging for repairs, or making repairs that may or may not be essential at the time.

 

• Bonus Benefits
  When you have an extended warranty, you often have added benefits that come with it. These benefits can cover towing costs, discounts on rental cars, trip insurance, and lost-key/lockout costs, as well as others. Check your warranty to see what benefits are included.

 

As a consumer, it is always important to thoroughly research and weigh your options before making any purchase. When it comes to buying a new car, it is important to consider the benefits of purchasing an extended warranty with your vehicle. It may just save your wallet.

 

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