When buying a new or used car, you may wish to consider getting an extended warranty above and beyond the manufacturer’s or our dealership’s warranty.
Here are some FAQ’s about extended warranties to assist you in better understanding your options and safeguarding your investment:
1. What is an extended auto warranty?
An extended warranty is an agreement between the car owner and manufacturer, obligating the manufacturer to pay for repairs covered by the contract for a specific period of time. With an extended auto warranty, you are protecting yourself from the unexpected cost of mechanical failure.
2. Why do I need an extended auto warranty?
Whether you own a new or older make/model, an extended auto warranty will provide you with peace of mind regarding costly repairs that can happen at any time during the life of your car. Buying an extended auto warranty today will allow you to avoid paying higher rates later, due to price increases. You’ll also be able to immediately take advantage of your plan’s benefits: including towing, lost key/lockout, and car rental discounts.
3. Why should I purchase an extended auto warranty now if my vehicle is still covered by the manufacturer?
As your vehicle accrues miles and ages, the price for an extended auto warranty will rise, as do the repair costs that you would experience for an older, out-of-warranty vehicle. Capitalizing now on your vehicle’s low mileage can be the most logical approach as you estimate and plan for future repair costs.
4. What types of auto warranties can I buy?
Powertrain Warranty: This warranty covers the powertrain which includes the engine, transmission, and other parts of the drive axle and driveshaft, which are defined as the parts of the vehicle through which oil flows.
Bumper-to-Bumper Warranty: Covers nearly all of the mechanical systems on a vehicle, from front bumper to back bumper, except for those on the “exclusion list”, which lists the parts that are not covered. Be sure to read what is included or not included, so you have a clear and comfortable understanding.
Stated Component Warranty: Also known as an ‘inclusionary’ policy, this warranty covers the major mechanical systems of the vehicle, from mechanical breakdown and mechanical failure. This warranty can be bought especially on Certified Pre-Owned vehicles and can be a very good value.