Benefits of Extended Warranties
A manufacturer’s warranty is a major part of the decision making when purchasing a new car. But once your decision is made, the next question is whether or not you purchase an extended warranty. Extended warranties are available on both new and pre-owned vehicles. Extended warranties can be costly but they can also provide peace of mind to the buyer, the assurance that they won’t have high out-of-pocket costs for any major parts and labor once the initial warranty ends.
Essentially, an extended warranty is like an insurance policy on your vehicle for costly and unexpected repairs. Some wonder if the added expense is worth it. Most manufacturer’s basic warranties are for 3-5 years or 36,000-60,000 miles, whichever comes first. There are numerous reasons buyers may want to have the extended coverage.
Unexpected Major Repairs
Major repairs often happen after the manufacturer’s initial warranty period has expired and several years into ownership. Transmission and engine repair and/or replacement can cost thousands of dollars. Many modern cars have computer systems that are also costly to repair or replace. An extended warranty will lower your out-of-pocket expense and after one major repair, can easily pay for itself.
Increasing Life of Vehicle
According to the US Department of Transportation, the average age of vehicles on the road is at an all-time high of 11 ½ years. Considering new cars are built and designed to last more than 100,000 miles, that age is bound to keep going up. Factor in the average person drives 15,000 miles per year, the warranty will run out far before the life of the car for most people. An extended warranty gives you financial protection for a more realistic ownership time period.
When it comes time to sell your car, having a transferable extended warranty can be a selling point. Not only does it make your vehicle more attractive, it can increase your selling price. If this is something you foresee in your future, make sure the extended warranty you purchase is transferable before you buy.
Coverage for Everyone
There are numerous warranty plans available. You can get warranties that cover maintenance costs, power train components or full coverage bumper to bumper, some even have the benefit of roadside assistance. Cost will vary depending on coverage and provider. When looking into different plans, the most important factors are coverage, cost and deductible. Other considerations to think about is how long you plan to own the vehicle, the reliability record of your model car, and what is not covered.
Next to your home, an automobile is one of your biggest investments. Protect your investment and limit out of pocket expenses with an extended warranty. In the market for a new or pre-owned car purchase, see what Tischer Auto Group has to offer at www.tischerauto.com.