A major reason consumers choose to buy a new car over the used one is peace of mind. A new car is not likely to suffer from mechanical failures as would be the case with an older model possessing significant mileage.
While the odds of a brand new car suffering from some kind of defect are low, problems do manifest in an unexpected fashion. This is why manufacturers choose to warranty their vehicles. A standard warranty could cover a car for five years or up to 60,000 miles.
Anyone who feels much of threshold is too low the has the option of purchasing an extended warranty from a third party. This way, a number of surprising mechanical mishaps end up being covered.
The costs for an extended warranty are usually reasonable. Generally, the consumer never has to cash in on the warranty deal. While the chances of something negative happening are minuscule, this does not mean the buyer should be haphazard when choosing an extended warranty.
Look Over All The Extended Warranties
Selecting an extended warranty should not be done without a careful examination of the different deals presented by the various services. To choose an inappropriate extended warranty may lead to being disappointed with the eventual service.
One plan may be more comprehensive than another, which is why buyers need to take steps to properly determine they are accepting the right plan. Nothing would be more aggravating than paying for a warranty, assuming something is covered, and then finding out the repairs are excluded.
Examples of Companies And Their Offerings
The various entities involved in the extended warranty world know they must provide unique services. When everyone is offering the same thing, there is no real reason to buy from one vs. buying from another. Yes, there may be a bit of effort required to find the best extended warranty service but the effort should be deemed a wise time investment.
One thing to be aware of is certain warranty services are actually brokers. Endurance is one such company. Dealing with Endurance entail working with a service to find another company that is the preferable supplier of a warranty.
Entities such as Delta Auto Protect, AA Auto Protection, and Warranty Direct are examples of enterprises that sell and administer the warranty. For some, dealing with a company as opposed to a broker is the more preferable option.
Regardless of the company being looked over, a very basic question has to be asked by the prospective customer: What is the extended warranty going to cost?
The Extended Warranty’s Fee
The fees on the extended warranty are going to vary. The more coverage procured, then the more the price of the extended warranty is going to be. The fee required might be a one-time charge. A series of recurring fees may need to be paid on the warranty deal. Individual services are going to come with their own payment costs and requirements.
Be mindful of any deductibles. People think deductibles are only associated with insurance coverage. Such is not the case as a warranty may or may not come with a deductible as well.
The Actual Coverage
Never make the assumption an extended warranty — or the original warranty — is going to cover each and every problem the vehicle runs into. All warranties are going to come with limitations. Examine the coverage limitations closely. Do this long before accepting and paying for the new extended warranty. A good warranty is one in which the limitations make sense and are reasonable given the actual cost.
Premium coverage options may be available. Such coverage entails paying a little extra for a little more coverage. Those hoping to maximize their warranty potential might see this as a valuable add-on.
The Length of the Coverage
An extended warranty is going to come with a certain timeframe in which the warranty can be tapped into. Other terms and conditions, as the saying goes, may apply as well. For example, the warranty might not be in effect for 30 days or 1,000 miles. This keeps the warranty provider from being on the financial hook for a problem that existed before the warranty was purchased.
Other things need to be taken into consideration. A warranty may “shut off” when the car reaches a certain mileage point. At 80,000 miles, mechanical problems and repairs should not be considered unexpected. Also, different segments of the car might have lowered warranty timeframes. The transmission may only be covered for two years while the electrical system may be covered for four.
Of course, checking out the coverage offered is a must. A plan may cover wear-and-tear and maintenance-related issues. Other plans might only cover severe malfunctions of the original parts. Select the extended warranty that best fits individual needs.
The Choice of a Mechanic
Look at the list of approved mechanics for the warranty. Yes, there is going to be a list of mechanics who are authorized to peform the warranty-compensated repair work. Warranty companies generally have affiliations with designated repair service centers. Buyers of extended warranties are advised to make sure they are comfortable with the available selection of mechanics. Overlooking the mechanic list can be a big omission when choosing a warranty.
Adhere to Terms
Warranties do come with specific terms. Violating the terms could void a warranty. The warranty service may require all routine maintenance be performed like clockwork. No matter what the terms are, they must be taken seriously. Otherwise, the warranty won’t be worth anything.