4 frequently asked questions about extended car warranties
The greatest dilemmas you can come across while purchasing a car is, “Should I get an extended car warranty or not?” First of all, it’s crucial to remember that buying an extended car warranty is optional. So if any salesperson tells you otherwise, it is a sign to start looking for a more credible dealership. Usually, car dealerships embellish and pitch extended car warranties that make them sound like an attractive backup. However, in reality, it can prove to be taxing on your budget, especially, if you are already dealing with auto financing options.
Read further to know about extended car warranties in detail.
What are the limitations of an extended car warranty?
The following are some of the most prominent disadvantages of getting an extended car warranty:
- It is estimated that over 50% of the consumers who get an extended car warranty don’t find an opportunity to use it. This simply suggests that an extended car warranty is an unnecessary introduction to the final costs.
- Ordinarily, most extended car warranty plans are heavy on the pocket. Plans vary across manufacturers or providers and the range can be anywhere from $1200 to $3000.
- The repairs/damages included in the extended car warranty are often the uncommon ones. Therefore, you will still have to bear out-of-pocket costs for routine maintenance or parts that need to be repaired or replaced frequently.
What measures can a car owner take to minimize maintenance costs?
For most auto buyers, extended car warranties can prove to be a big financial disadvantage, as they might be of no use to them. It would be smarter if car owners consider an extended car warranty only after the factory warranty has expired. In the meantime, to save costs, car owners can take the following measures:
- Selecting the right car brand- If one is looking to cut down on the maintenance or repair costs, then their first job should be to look for a reputed auto brand. Using a quality car model from a reputed car manufacturer automatically means that one doesn’t have to waste funds on common repairs. Moreover, top brands will also have good warranty arrangements that eliminate the need of having an extended plan. At the moment, manufacturers like Porsche, BMW, Mazda, Kia, Buick, Honda, Lincoln, Subaru, Audi, and Lexus are recognized for their reliability and superior auto services.
- Maintenance cost plan- The most basic car warranty plans will exclude routine maintenance items like oil changes, windshield wipers, and/or brakes. Therefore, car owners should carve a budget and save money for the items that will definitely require replacement or maintenance at some point. Rather than spending thousands of dollars on an extended car warranty plan, one can put aside the very same amount for potential repairs.
Which are the popular companies offering extended car warranties?
If your car is a used model with an expired factory warranty plan, then you can look at the following providers for decent extended car warranty plans. Before finalizing an option scrutinize the plans’ duration, what they offer, overall cost, and consumer reviews.
- Protect My Car
- Omega Auto Care
- Concord Auto Protect
- AA Auto Protection
- GWC Warranty
How to choose a good extended car warranty deal?
Here’s what you can do to get the best extended car warranty deal:
- Rather than just considering the offer provided by the dealership, shop around for a while. There are many third-party providers who will be willing to render bundles at reasonable costs and more coverage.
- Investing in an extended car warranty in itself is a risk, therefore, don’t be reluctant to negotiate. Likewise, the salesperson can tend to get a bit aggressive with their negotiation tactics but be determined. If the deal doesn’t appeal to you, decline it straight away instead of getting overwhelmed.
- Before signing any contract ensure that you read and understand the finer points of it. Look for any loopholes or disadvantageous conditions. If you notice any shortcomings, try to push a better deal.