Are you confused about extended car warranty? Not sure what to do next? Here are a few frequently asked questions that will help you get clear and make the right decision when it comes to used car extended warranty.
What is an extended warranty?
An extended warranty also referred to as mechanical breakdown insurance (MBI) is coverage that comes in after your manufacturer auto warranty has expired. It covers major breakdowns and stabilizes the cost of repairs because the prices of the different parts tend to fluctuate over time
An extended car warranty typically protects you from the unexpected costs of repair. This is because accidents are inevitable and happen every day and it’s important to have a warranty in place
It, therefore, is a cover which ensures that if something were to happen to your car, you won’t be affected as much since most of your costly repairs are covered
Do you really need an extended warranty?
Is your used car warranty about to expire? Do you need to extend your warranty? Whatever your situation is, it’s important to consider your next step in terms of getting protected
When you buy a car, the manufacturers know that they’re not meant to last forever hence putting the original factory warranty to have you covered for a specific period and when it lapses you can buy a new car. Instead of going through all these hurdles, having a used car extended warranty protects your car from unexpected repairs and saves you money by keeping your automobile well-maintained and taken care of
It also depends on the kind of person you are when answering this question. Are you someone who doesn’t care about risks and has some extra-money saved up, then you don’t need to worry about extended car warranty because you may not need to get it. However, if you live in an area with harsh weather or you use your car frequently, then the likelihood of accidents is high and having a form of protection is always important
What does it cover?
When you’re getting an extended warranty, it’s important to get all the details and information about the coverage options beforehand. The carriers have to give you the details and you can then look at the components that are covered and compare the different quotes and plans to find one that suits your needs.
Therefore each warranty is different but most covers breakdowns in terms of the engine or transmission and others don’t cover much wear and tear parts
Extended warranties have different coverage tiers like silver, gold and platinum and each of these have their own prices and coverages and you should find out more about all of them to know what is and isn’t covered in each. Another factor you should consider is whether the repair bills are fully covered or you have to pay a small deductible or pay out of pocket and be reimbursed later?
What is the manufacturer’s warranty?
A manufacturer’s warranty also known as a factory warranty begins at the point of sale and it provides a guarantee by the manufacturer that your car will be free of breakdown for a specific period of time and if it gets those breakdowns, you will be covered
Therefore this is the warranty that your car comes with after sale and it protects you for a certain time until it lapses
Do you need to get an extended warranty when you’re still covered by the manufacturer’s warranty?
The price of an extended warranty is based on several factors including the age of your vehicle, mileage and more. If the price is a factor for you, you should get an extended warranty earlier. This is because the earlier you get your car protected, the less it will cost you
Thus it doesn’t matter if you’re still covered by your manufacturer’s warranty, getting your car protected now will qualify you for the best coverage options and lower prices
How much does the coverage cost?
The cost of an extended warranty varies depending on the provider. It’s hard to know this but you can call the car warranty company yourself and its best to compare and shop around before making a final decision.
The cost usually varies based on the brand, make, model, coverage option or carrier you’re purchasing from. Some may be extremely costly and others not so much and it’s important to do your research.
How long do the coverages last?
Extended warranty coverage last for a longer period than the manufacturer’s coverage. Some may be from 2 to 7 years and if you want your car to be protected and taken care of for a longer period, you can choose a longer plan that suits your needs. Even though you sell your car before the time elapses, the protection may be transferable
What will happen if I decide to sell my car?
If you want to sell your car and you have coverage in place, then it will also be transferable. Extended vehicle protection increases the resale value of your car if you decide to sell it. It also gives the person purchasing peace of mind knowing that they are covered and the process is simplified
If you don’t have an extended warranty, you should first get it and then you can sell your vehicle. You can choose a refund on the unused part of the warranty or transfer it to the person purchasing the car