Extended Car Warranty Info
Buying a new car? Have you considered getting a car warranty? Read below to find out more about car warranties and why you need them.
Car buyers usually spend a good amount of time researching the vehicles they are interested in. From the price, to how fuel efficient it is, and even how much it will cost to buy, all has been factored in. Unfortunately, a lot of car buyers overlook, or simply will not put the effort into doing that same level of research for the add-ons offered by the finance office at the dealership. This lack of preparation is a costly mistake to make that could cost you or a loved one some serious cash. By not knowing which add-ons or car warranties are worth your time and money, you stand to lose out on significant savings. A good car warranty will help save you hundreds if not thousands of dollars.
Car warranties are basically repair contracts with your dealership. These warranties limit or mitigate the risk financially for the car owner in case of mechanical issues with their car. However, most warranties are attached to their specific mechanic’s garage, which can be a good and bad thing depending on the warranties chosen. It can seem confusing. Use this handy guide to understand car warranties better, so you can make a more informed decision.
What is a car warranty?
A car warranty is a signed contract from the dealer, or after-market supplier, that covers your car’s future potential mechanical issues, usually up to a certain dollar amount. After that dollar amount it is out of pocket for the buyer.
Warranties also have coverage for manufacturer defects with the car. These warranties usually become active when a part for the car does not meet company standards or has failed entirely. So, these defect warranties will only cover part issues, not other types of damage like car collisions, or damage gained from using the vehicle in a way it was not intended to be used. The normal wear and tear of car life is also not covered by car warranties.
Why You Need a Car Warranty Plan
Most car buyers, when deciding on a car, do not pay attention to the warranties that come with the car. Often they just completely bypass a warranty because they are not sure if it is worth the money. Here are a few reasons why you should get a warranty.
Hefty Cost Savings- For car owners with expensive or foreign import cars a warranty helps mitigate the high cost of those specialized parts. Even for those non-expensive cars like Fords or Chevys you will accrue cost build up for parts as the car naturally ages and breaks down. So, having a warranty that covers parts replacement is a must have.
Peace of Mind- Extended warranties are perfect for new, used, or handed down vehicles to offer some peace of mind. Extended warranties are warranties that offer extra coverage for unexpected repairs. This saves you from paying out of pocket for a sudden suspension issue or other unforeseen accidents and failures. It is also best to go with trusted warranty dealers.
Benefits Unknown- Warranties do not only cover cars for damage, but other things as well. Most warranties include other features like, trip protection, towing, rental car reimbursement, affordable monthly payments, and Roadside Assistance. The benefit of having roadside assistance is that they are open and on call ready to help you 24/7. This can range from jumping a battery to hauling off your car.
Flexibility- CARCHEX, unlike manufacturers, can offer flexibility when it comes to their warranties. Many manufacturers limit where you can take your car in for repairs, such as their onsite garage. Carchex allows for high flexibility when choosing a mechanic just as long as they are an authorized garage. Other reputable warranty companies include:
Resale value- Most of all warranties can be transferred in the event you sell the car to another buyer. Usually for a small fee you can transfer the warranty and all its benefits to the new owner. Being able to do this also allows for the car to be sold at a higher price for the included warranty.
Types of Warranties
This type of warranty is used to insure and cover the pieces of the vehicle that allow it to move. These warranties usually last just a few years and will need to be renewed when they expire.
This warranty is also referred to as ‘The Bumper-to-Bumper’ warranty as well. This warranty covers every single little piece of your vehicle. This warranty lasts a few years then needs to be renewed.
Corrosion is a big factor with vehicles. Corrosion leaves unsightly rust spots in various places on the vehicle. If left untreated it can rust completely through. This warranty is one that is generally issued when you purchase a vehicle. This warranty is active for five years then will need renewing.
Restraint systems Warranty
If anything needs to cover against faulty or breaking parts, it Is the safety restraint systems within a car. These warranties are heavily variable from one dealer to the next. So, it is very important to at least look over this warranty. Some newer models have a lifelong restraint system warranty, but most must be renewed after a few years.
What will a warranty cost?
The average buyer will shell out around $1500-3500 to buy a warranty for a car. In March 2022, according to a survey nearly half of the warranty owners paid somewhere in the range of $1600-3200 for their warranties. Extended Warranties cost more as they cover more.
Car warranties are not insurance
Warranties only cover the quality of the car and the parts therein. If your car is damaged by an accident, a storm, or theft, the warranty will not cover it. For those issues, car insurance is important to have. In fact a lot of people insist on having both a warranty and insurance so that the car is 100% covered from all types of damage or issues.