Extended Car Warranty

Today, we’re talking about extended car warranties. An extended car warranty is a service contract that drivers can purchase in order to pay for repairs to a vehicle’s major systems, such as the transmission, engine, or axles. There are two main types of extended car warranties: manufacturer warranties  and third-party warranties. 

Manufacturer warranties use factory parts, and repairs are done by factory-trained technicians at dealerships. Manufacturer warranties often have higher customer satisfaction, too, and they can transfer to a new owner if you sell your vehicle while it is under the warranty. 

Third-party warranties, usually just called extended warranties, typically use aftermarket parts, and repairs can be handled by any authorized technician. Additionally, there may be a transfer fee if you sell your car while it is covered by a third-party warranty. Not all extended warranties cover the same things, though. For example, bumper-to-bumper warranties include protection for all of the vehicle’s parts as well as routine maintenance, and powertrain warranties cover things that make the car move, like the engine and transmission.

Depending on how much coverage the warranty offers, extended warranties can cost anywhere from $1,000 to $3,000. Ultimately, from a financial standpoint, extended car warranties generally aren’t worth the cost. If you drive a reliable car and can afford the cost of an emergency repair out of pocket,  you likely don’t need an extended warranty. Also, if you have a trustworthy mechanic or carry mechanical breakdown insurance, an extended warranty probably won’t be worth the investment. 

However, an extended warranty may be right for you if you enjoy having the extra peace of mind or if your car isn’t very dependable. Now that you have an idea of what extended warranties are all about, you’re ready to start shopping for a plan. I hope you enjoyed this session on everything you need to know about Extended Car Warranty. So always be sure to contact a professional before making any financial decisions.