Why You Should Consider Purchasing An Extended Car Warranty

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Your car’s warranty covers various mechanical as well as electrical breakdowns. And extending your warranty is an incredible idea as it will offer comprehensive coverage after the manufacturer’s warranty period expires.

What to Expect

After the expiration of the manufacturer’s warranty, any mechanical or electrical repairs become your own liability. What this means is that you’ll be required to pay out of your pocket, and this can end up being costly.

Not everyone has the financial ability to fix this kind of issues-unless you’ve specifically set aside savings account for car maintenance as well as repairs. Depending on the part that breaks down, you could actually end up with a broken car that’s too expensive to fix. And that’s exactly where a Lexus extended warranty comes in handy. You can always extend your warranty to mitigate the risk of paying the bill in case of a breakdown.

Extended warranties are particularly more important for people who depend on their cars for work. If you’re a sales representative, for instance, you can’t actually make it without a car. While this provides a great safety net, it’s also important to note that not all manufacturers offer the same warranty claim rate as others. Picking a manufacturer who offers an affordable warranty claim rate is extremely important.   

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When to Buy An Extended Warranty

If you’re planning to retain the ownership of your car for a period longer than that of the manufacturer’s warranty, it’s advisable to purchase extended warranty before the original cover expires.

Generally, there are two different types of extended warranties; a pre-owned and an extended warranty. In case the original manufacturer’s warranty expires before you extend your car warranty, you will only eligible for a pre-owned warranty which isn’t as comprehensive as an extended car warranty.

In pre-owned warranties, each component is independently limited in terms of value. Though quite expensive, extended warranties offer more comprehensive benefits. So, consider extending your warranty before its expiration date so as to qualify for unlimited warranty cover.

Not All Extended Warranties Are Similar

Remember, not all extended car warranties cover similar things. Of course, most of them cover the fundamental components but the value of cover you get differs depending on the type of warranty you choose- comprehensive or limited.

Depending on the brand of car you own, the manufacturer’s warranty also differs. When choosing a car, settle for brands that offer a comprehensive cover.  Just like pre-owned warranties, limited warranties gradually decrease in value as the vehicle ages- giving you reduced coverage each year. Certain components get removed completely, and by the end of it all, you’re only left with 30 percent of the cover you began with. And if you choose to extend the limited warranty, your extended car warranty will start at only 30 percent cover. So, be keen to pick your brand wisely. Before signing the contract, ask the Finance and Insurance (F&I) advisor to explain all things that are covered by the warranty and how comprehensive the plan is.

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How to Get an Extended Warranty

By extending your warranty, you’ll be improving your chances of extending the manufacturer’s warranty or buying a warranty through a third-party.

If you opt to purchase an extended car warranty via your dealership, they will provide you with numerous options including the manufacturer’s endorsed option. Since the CPA (Consumer Protection Act) compels dealers to provide multiple choices to clients, you’ll have the freedom to choose a plan that perfectly suits your needs. The Finance and Insurance advisor should also explain the benefits as well as the pitfalls of each particular option.

On the other hand, third-party suppliers specialize in offering generic warranties. They might also offer manufacturer-endorsed warranties. Whether you purchase your extended car warranty from a dealership or via a third-party provider, the manufacturer’s extended warranty is always an excellent option. Manufacturers often utilize up-to-date parts pricing and conduct detailed claims analyses. 

Compare what’s covered by the insurance against what’s covered in the warranty. Certain insurance companies build in some extras, which could just end up costing you lots of money. These can include medical assistance, hotel accommodation, and free car washes. And you really don’t want to pay for all these unnecessary stuff, right? Don’t duplicate coverage that you already have. Typically, your insurance plus medical aid cater for all these added services. So, when you’re evaluating your extended warranty options, consider focusing on their core value; electrical plus engine cover. Ensure that you’re covered for the greatest value possible, especially when it comes to the replacement of these critical parts.

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Extended Disclosure

People who choose to buy an extended car warranty  tend to have so many beliefs about that warranty, which aren’t often accurate. To make an informed decision about these warranties, it’s important to understand all the specifications.

Try learning about the best secrets associated with the auto extended warranty enterprise and you’ll be good to go. It’s best to purchase the warranty from the dealership from whom you bought the car.  

However, it’s important to note that additional costs which might not be directly apparent are the cost of car financing. Most dealerships make some profit on the money they offer you to purchase the vehicle. And the more money you borrow, the higher the amount of profit they make. You might even find some dealers suggesting that you wrap extra items into your auto purchase. Remember, rolling in the warranty means that you’re effectively financing its purchase at a price equal to the value of your car. Considering that most warranty providers have zero percent finance plans available, this could constitute an unnecessary premium. 

The Bottom Line

When it comes to extended car warranties, there are several aspects to take into consideration. And it’s important that you deeply understand the specific details in order to pick the best option. Know what your dealership, manufacture or third-party has got to offer and then choose the most affordable, flexible, and reliable plan. 

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