Accidents happen. When an accident or act of nature disrupts your life with damage to your vehicle, you call your auto insurance company. What about everything else? Many things can malfunction on a vehicle outside of this narrow scope. There is nothing worse than breaking down on a long drive and not being able to afford repairs. If you are looking to avoid the high costs of maintenance and repairs, consider an extended warranty.
What Is an Extended Warranty?
Despite the now ubiquitous scam calls, extended warranty companies are far from scam artists. An extended warranty is aptly named. It is a warranty acting as an extension of your car’s original manufacturer’s warranty. This covers maintenance and repairs, and in some instances, warranty issuers offer roadside assistance for breakdowns.
Should You Get an Extended Warranty?
Many auto sellers will try to urge you to get an extended warranty when you purchase or finance a car. Not only is this superfluous, as this will likely overlap with the existing manufacturer’s warranty, but it can be needlessly expensive. Suppose you include the cost of the warranty when financing the car. In that case, you will likely be paying interest on the cost of the extended warranty before you ever use it.
An extended warranty is especially valuable on a used car. They offer invaluable peace of mind. Manufacturer’s warranties cover repairs, maintenance, and breakdowns but usually expire somewhere between 36,000 and 60,000 miles. It does not make sense to abandon that coverage just as you begin to need it.
Used cars show their age through recurring service costs. Suppose your vehicle is increasingly needing repair, or the manufacturer’s warranty is due to expire. In that case, an extended warranty is the way to go. Additionally, if you plan on selling your car, an extended warranty is an excellent way to increase its market value. Most extended warranties are transferable at the time of purchase for a small fee.
Drawbacks
Just as every rose has its thorns, extended warranties, too, are not without their own drawbacks. Some people who have purchased one report never have used them. An extended warranty can also overlap with a manufacturer’s warranty, resulting in a service you are paying for but cannot use.
Some warranty companies only permit servicing at specific locations. This can be troublesome if you are prone to frequent moves or travel. When looking to purchase an extended warranty for your used vehicle, be sure to check for a depreciation clause. This caveat enables a warranty company to deny service if a vehicle exceeds a certain mileage. Double-check before you buy, and be sure to read the fine print.
Scams
How can you tell if an extended warranty is a scam? You are likely familiar with the fake phone calls. Still, there are several ways scammers may try to manipulate you with the promise of an extended warranty. In addition to robots on the phone, many scammers use mailers. They often pose as car dealers, manufacturers, or insurance agents. A tell-tale sign you are being scammed is if you are pressured to make an immediate decision. A reputable company understands the gravity of an important financial decision and will give you time to make up your mind.
How to Choose
With so many scammers and legitimate companies offering the best coverage at affordable rates, how do you choose? While this may seem daunting, identifying the best extended used car warranty company can be quite easy. There are many resources with which to look at prices and reviews.
Endurance extended warranties are a great choice. It offers coverage starting at 200,000 miles in addition to roadside assistance and some uncommon maintenance coverage options. CarShield is another great option. It also offers up to 200,000 miles for used cars, roadside assistance, and even cover rentals.
Caring for a used car can be an expensive relationship. Perhaps you are the kind of person who loses sleep wondering how you will afford unforeseen expenses. In that case, an extended warranty is for you. In addition to peace of mind, they can save you serious money. If you are ready to pull the trigger on an extended warranty, do your research. Get quotes from at least three different companies, and watch out for scammers. With some research and common sense, you will be sure to find a great deal.