Extended Warranties For Car- Pros and Cons

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According to a study, it is found that reliability and durability are the most important characters considered by consumers when choosing a new vehicle. Warranty coverage is a non-issue for many buyers due to recent expansions of original warranty coverage by many automakers. Today, manufactures are offering longer original warranties coupled with an increase in reliability to boost consumer confidence and trust in their brand. Most of the top brands now carry a longer warranty period to help set the consumer’s mind that they will not have to pay out of pocket for many major repairs during the first few years they own a vehicle with an extended warranty.

Pros

1. Flexibility

By nature, an extended warranty for a car is an aftermarket product and they can be tailored to fit almost any situation. You may consider an extended warranty to your vehicle if there is any difference between your vehicle’s original bumper-to-bumper warranty and power warranty, but do not want to pay for the additional powertrain coverage. In this case, the customer is not paying for the coverage they already have since and extended warranty is tailored to only extend the bumper to bumper warranty coverage.

2. Repairs are covered

Modern vehicles are more complex when compared to traditional ones. An important benefit of an extended car warranty is that all the expensive repairs will be covered by the warranty. Today’s vehicles come up with fully equipped components like complicated engines, cameras, electronics, and a lot more. Though these components are specially designed to last for a long time, sometimes things may go wrong. They may get damaged and may require repair or replacement. Extended warranties make an expensive repair as stress-free as possible by covering the cost.

Cons

1. Extended Warranties are expensive

You are placing a bet when you buy an extended warranty. The bet is that your car will meet with ultimate repairs than the cost of the extended warranty. Similarly, the warranty provider is also placing a bet that your vehicle will not require more repairs than the cost of the warranty. Of course, one of you will certainly win the bet, and when you consider the number of warranty providers, it would appear that the odds are not in your favor. However, keep in mind that most of the time the cost of the warranty can be negotiated.

2. They don’t cover all repairs

As the extended warranty contracts are loaded with fine print, it is difficult for the customers to read the fine print, and they find it hard to understand what the warranty covers and what they don’t cover. Most of the warranty providers will give a potential customer something called an “exclusion list”. Make sure you read the exclusion list which will enumerate in detail those parts, systems, repairs that are not covered by the extended warranty.

Final Verdict

Buying health insurance and obtaining an extended warranty for your vehicle is almost alike. You may not really need the extended warranties for your vehicle, but if something happens and you have coverage, you could save a good amount of money.

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