We’ve all been there. You’re at the dealership, closing the deal on your new car. The salesperson asks if you’re interested in purchasing an extended warranty, and you start to feel the pressure. Do you really need an extended warranty? Is it worth the money? Let’s take a look at why you should avoid buying a warranty at the dealership.
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What is an Extended Auto Warranty?
An extended auto warranty is a type of service contract that covers repairs and maintenance for your vehicle after the manufacturer’s warranty expires. These contracts are typically offered by dealerships at the time of purchase, but they can also be purchased from third-party providers like Endurance Warranty.
An extended warranty can give you peace of mind by covering the cost of unexpected repairs, and it can also help you avoid potential financial hardship in the event that your car needs a major repair.
While extended warranties are not required, they can be a valuable tool for protecting your investment in your vehicle. When shopping for an extended warranty, it is important to compare coverage options and prices to find a plan that best suits your needs.
What Does an Extended Auto Warranty Cover?
Most auto warranties offered by dealerships cover the vehicle for three years or 36,000 miles, whichever comes first. An extended warranty picked up after you’ve purchased the car can last anywhere from one to seven years and add tens of thousands of miles onto the coverage.
Auto warranties generally have different levels or plans that cover different parts of the car for different lengths of time. Many manufacturers offer bumper-to-bumper protection for the first few years, which then converts to a powertrain warranty covering major components like the engine and transmission.
Some plans also cover things like towing, rental cars, roadside assistance, and trip interruption. Before signing up for an extended auto warranty, be sure to read the fine print and understand exactly what is and is not covered. That way, you can be sure you’re getting the most out of your investment.
Dealership vs. Third Party Warranty
These days, many people are choosing to purchase extended warranties for their vehicles. But with so many options on the market, it can be hard to know which one is right for you.
One option is an extended warranty from an auto dealership.
These warranties are often comprehensive, covering a wide range of potential repairs. However, they can also be more expensive than other options.
Another option is a third-party extended warranty. These warranties typically cover a narrower range of repairs, but they can be more affordable. Ultimately, the best extended warranty for you will depend on your budget and your driving habits. But whichever route you choose, an extended warranty can give you peace of mind on the road.
The Dealership is Not the Best Place to Get a Warranty
When it comes to extended warranties, dealerships are not always the best place to get one. For starters, dealerships typically markup the price of extended warranties, sometimes by as much as 50%. So, if you’re looking to save money, you’re better off avoiding the dealership altogether
In addition, most new cars come with some sort of factory warranty from the manufacturer. These warranties typically cover major repairs and defects for at least 3 years or 36,000 miles (whichever comes first). So, unless you’re planning on keeping your car for more than 3 years, an extended warranty may not even be necessary
Finally, many credit cards offer extended warranty protection (for an additional fee) on purchases made with the card. So, if you use a credit card to finance your new car, be sure to check if your card offers this type of coverage before purchasing an extended warranty from the dealership
How to Choose an Extended Auto Warranty
If you’re like most people, you probably don’t give much thought to your car’s warranty until it expires. Then, when faced with the high cost of repairs that auto insurance won’t cover, you may start to wonder if an extended auto warranty is worth the investment.
The good news is that there are a few things you can do to help make sure you choose a reputable company. First, be sure to read the fine print of any contract before signing it. This way, you’ll know exactly what’s covered and what’s not.
Next, check out online reviews and compare pricing. Finally, make sure you understand the terms of the policy before making a purchase. By taking these simple steps, you can help ensure that you choose a quality extended auto warranty company.
At the end of the day, whether or not you purchase an extended warranty is up to you. Just know that there are other options out there besides buying one at the dealership. If you do decide to purchase an extended warranty, be sure to shop around for the best price and coverage. And remember, most new cars come with some sort of factory warranty from the manufacturer, so an extended warranty may not even be necessary.