Buying a new car is one of the most exciting things in a person’s life. However, there is so much information that everyone needs to be aware of when it comes to owning a car. This is not a toy, so it is necessary to know everything about owning a car. One of the very important factors considering getting an extended car warranty.
Many new car owners are really not familiar with this term and what exactly an extended car warranty refers to. In general, people are aware that a car warranty is used for car protection, however, they do not know what does it cover exactly, and whether it is worth investing in it. Therefore, in this article we prepared everything a person needs to know about the extended car warranty, what does it cover, how does it works, and finally, the benefits that come with it.
What is an extended car warranty?
Let’s start with an explanation of what exactly is an extended car warranty. Maybe if you hear the other name for the car warranty which is a vehicle service contract you will get a more clear picture of what does it represent. In general, this is an optional assurance that you can buy which can help you in the future with any costs of car repairs. This means, that whenever the vehicle you own needs some repair, you should not worry about how you are going to pay for it. This extended car warranty is valid when the manufacturer’s warranty expires. However, there are some cases where these two warranties can work at the same time. There is one big thing that you should know and that is the fact that an extended warranty does not cover everything, so we prepared in the further text things that this contract will cover in case your car is damaged.
How does an Extended Auto Warranty Works?
Whether you owned a car or some other vehicle before, or you did not, you are surely pretty aware of the fact that it would have some problems and damages from time to time. Logically, things stop working at some moment and some problems can be more serious and complex than those that are covered by your regular manufacturer’s warranty. Also, the same problem can continue appearing even after the manufacturer’s warranty stop begin validly. This will come with huge financial problems for you because you will need to pay for that repair or replacement from your pocket.
That is the exact moment where the expended auto warranty will be your life-saver. An extended car warranty is a service contract created to cover the costs of any service that goes beyond the manufacturer’s warranty or after it.
Let’s say for instance that you bought a new electric car that has a manufacturer’s warranty that is valid for three years. These cars come with a complex electrical system, so when the third year of owning a car is the owner, you can get really stressed about whether the system can be damaged. However, with this contract, you can be peaceful that it will cover if the malfunction appears and you will avoid spending several hundred dollars.
What do extended car warranties cover?
There are different extended car warranties that you can consider purchasing, and you should be aware of the fact that they do not cover the same amount of parts that the original factory contract covers. Therefore, you should know the level of coverage it provides. Extended car warranty offer will depend on the company, however, in many cases, it does not cover routine maintenance such as new tires, oil changes, new brakes, etc. Also, roadside assistance is a separate purchase.
Therefore, when you are choosing the company, make sure to read their agreement carefully and see whether you are fine with their offer. Moreover, you should primarily find a company that is reliable and credible that also have a good reputation from the current clients. We did a little research for you and find out the extended car warranty option from a very experienced and reputable company, so if you are interested you can find more information about it.
The Benefits of Buying an Extended Auto Warranty
An extended car warranty comes with lots of different advantages that will save you money in a long way. For instance, you would not have to pay for the repair of any major car components including even the engine. However, let’s list some of the most important benefits that you will get with this contract!
People do not enjoy paying for car insurance, however, when some emergency strikes, it surely gives a big financial and stress relief. For instance, maybe your car engine just stops working at the worst time when you are out of your money, and you do not know how to pay for it. If you have this extended car warranty you will sleep peacefully that when any damage occurs it will be repaired or replaced. When you invest in this contract you are going to reduce costs of unexpected repairs in the future.
Increase the Trade-in Value of Your Car
One more big advantage of this contract is that it raises your car’s market value. Basically, all vehicles that are under warranty are constantly well maintained, and this refers to both new and older cars. Therefore, any time you want to sell your car and buy a new one, all buyers will want to buy a car from you because of the warranty. This will give them assurance that the car is in good shape and condition, and that they will not be scammed. You can also get a better deal with this advantage.
Extend the Life of Your Vehicle
Finally, one more huge benefit that comes with this warranty is the fact that you are going to extend the life of your car. You can be peaceful that the car you are driving is in good condition even after you paid the whole vehicle loan. In case anything goes wrong with the car, it will be repaired immediately, for free or at a reduced price.