Tips when buying an extended warranty for your car

Posted on: 29 August 2016

Extended warranties provide coverage in addition to the factory warranty extended to new cars by the manufacturer. Many people often consider getting an extended coverage when they feel that making repairs could be too costly after the factory warranty runs out. This is especially true for those buying used cars since they could be problematic and ultimately expensive. However, choosing an extended warranty that fits your situation could be gruelling if you lack proper knowledge or experience. Making a wrong choice on the coverage could cost you a lot if the coverage doesn't suit your circumstances. If you're interested in an extended warranty for your vehicle, here are some tips to make the right choice.

Select a suitable provider.

Extended warranties are offered by car dealerships or independent companies. Choosing a provider that will fit your circumstances is therefore up to you. Always ensure you pick a dealership or company that has a long-standing history with a solid reputation. Car dealerships are often vulnerable to the changes in the market. Car sales may fall and affect their business, or a recession could cripple their income. Either way, the result is an inability to honour the warranty whenever you are in need of service at such a time. Consequently, it's prudent to opt for companies that specialise only with extended warranties. This is because they rely less on car sales, so a fall in the market wouldn't have a significant effect.

Ensure you actually need it.

Don't jump on an extended warranty just because the dealer filled your head with terrible scenarios that happened to others. You have to find out whether you actually need it. If you don't intend on using a vehicle for a long period, then you don't need an extended warranty. The chances are that the repairs you'll need down the road will be covered by your vehicle manufacturer. Your driving habits should also come into play. Many manufacturers offer a factory warranty that expires once you attain a specific mileage. If you don't drive your car too much, your mileage remains low, and you'll probably have fewer repairs down the road. An extended warranty is therefore unnecessary.

Choose the right plan.

Extended warranties offer a variety of plans that are tailored to meet different needs. A bumper-to-bumper plan will include all vehicle components except exclusionary items prone to wear and tear. A drivetrain car warranty will cover all the parts responsible for the running of the car, such as the engine and transmission. Before you make your choice, consider the repair history of your vehicle. A bumper-to-bumper plan is suitable for a vehicle prone to general malfunctions even though it's costly up front. If you have recurring problems with your engine, then the drivetrain warranty is a suitable option.