This is a Guest Posting by: Adam Davies from Warrick Ford
Extended Warranties: the thing your DIY Dad said you don’t need, the salesman says is essential and you’ve never heard of. So what are they? Do you need one? And what does it do?
To get you started, an extended warranty is a service that you pay for which will cover some to all of your repairs down the line when your car needs fixing. There are usually two schools of thought when it comes to an extended warranty, there’s the side that think they aren’t worth thinking twice about, and then there’s those who wouldn’t buy a car without one. Those in the former group are entitled to their opinion, but in today’s world of holding onto vehicles longer and getting the most out of what you own, an extended warranty is a safe and smart investment.
An extended warranty kicks in after the factory bumper to bumper warranty expires on your vehicle and comes in different tiers of coverage depending on what you want to be covered. Complete packages are obviously pricier than basic coverage but also give you much more peace of mind knowing your whole car is covered, not just a major component. There will always be arguments against extended warranties and while cars have gotten more and more reliable over the years, your best bet is still to get some coverage. Here’s why, as I just mentioned, cars by in large have been getting more reliable in recent years and while that is a great thing, they have also been getting much more advanced in terms of parts, components and how they all work together, which works against you when it comes time to get something fixed.
A mere 10-12 years ago let’s say your side view mirror was clipped and broke off, while still a pain, these mirrors only cost you $20 and an hour in the garage to replace. Now jump to today, in the same situation, not only can a side view mirror be hundreds of dollars, but there may be no way you can replace it by yourself, which means taking it to a garage and paying even more money just to fix your mirror. The truth of the matter is that most of us today don’t have the time or expertise to fix our vehicles ourselves but also don’t want to pay thousands of dollars every time it’s in the shop. An extended warranty can greatly ease this pain we feel in our wallets and get us back on the road safely.
Another important thing to remember is that your extended warranty does NOT need to be purchased the same day you buy your new car, but it may be most negotiable then. Here’s what you do, before buying your vehicle, do your research, call around, get quotes and find out what plan is best for you, go into the dealership knowing what coverage and price you need and want and don’t budge. One caveat to this is that while you can still purchase an extended warranty after your factory coverage runs out, the cost increases dramatically, so it’s best to do it before hand.