November 28, 2023

4 Frequently Asked Questions About Extended Car Warranties

4 frequently asked questions about the extended car warranty
The biggest problem you can face when buying a car is “Should I get an extended car warranty or not?” First, it’s important to remember that purchasing an extended car warranty is optional. So if a seller claims otherwise, it’s a sign to start looking for a more credible dealer. Usually, car dealerships embellish and give extended car warranties that make them sound like an attractive backup. In reality, however, it can prove to be a tax on your budget, especially if you’re already considering car finance options.
Read more to learn more about extended car warranties.

What are the limitations of the extended car warranty?
Here are some of the major disadvantages of an extended car warranty:

  • It is estimated that more than 50% of consumers who receive an extended car warranty do not find the opportunity to use it. This simply suggests that an extended car warranty is an unnecessary prelude to the final cost.
  • In general, most extended car warranty plans are heavy. Plans vary between manufacturers or service providers and can range from $1,200 to $3,000.
  • Repairs/damages included in the extended car warranty are often rare. For this reason, you still have to pay your own 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 car buyers, extended car warranties can turn out to be a major financial disadvantage as they may not be beneficial to them. It would be wiser if car owners consider extended car warranty only after the factory warranty has expired. In the meantime, car owners can save costs by taking the following measures:

  • Choosing the right car brand – If someone wants to cut maintenance or repair costs, their first order of business should be to look for a well-known car brand. Using a high-quality car model from a well-known car manufacturer automatically means that you don’t have to waste money on common repairs. In addition, the top brands also have good warranty arrangements that eliminate the need for an extended plan. Currently, manufacturers such as Porsche, BMW, Mazda, Kia, Buick, Honda, Lincoln, Subaru, Audi and Lexus are known for their reliability and excellent car services.
  • Maintenance cost plan – Basic car warranty plans do not include routine maintenance items such as oil changes, windshield wipers and/or brakes. Therefore, car owners should make a budget and save money for products that will definitely require replacement or maintenance at some point. Instead of spending thousands of dollars on an extended car warranty plan, you can put the same amount aside for possible repairs.

What are the most popular companies that offer extended car warranties?
If your car is a used model with an expired factory warranty, you can check out the following service providers for decent extended car warranty plans. Before finalizing an option, check the duration of the plans, what they offer, the total cost and consumer reviews.

  • Resistance
  • Easy to care for
  • Carchex
  • Protect My Car
  • Omega Auto Care
  • Concord Auto Protect
  • AA automatic protection
  • CarShield
  • ForeverCar
  • GWC warranty

How to choose a good extended car warranty contract?
Here’s what you can do to get the best extended car warranty deal:

  • Instead of just considering what the dealer is offering, shop around for a while. Many third-party service providers are willing to render packages at a reasonable cost and with greater coverage.
  • Investing in an extended car warranty is a risk in itself, so don’t be reluctant to negotiate. Likewise, a salesperson can be a little aggressive in their negotiation tactics, but be decisive. If you don’t like the deal, reject it right away instead of getting caught up in arrogance.
  • Before signing the contract, make sure you read and understand its details. Look for loopholes or unfavorable conditions. If you find flaws, try to negotiate a better deal.

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