Category: warranty

May 01

Are Extended Car Warranties Worth It?

Purchasing a vehicle is a monumental achievement. However, people who buy cars have quite a bit to consider. Of these things, whether extended warranties are worth it for your car is among the biggest. Of course, some owners go for coverage from the manufacturer whereas others use car warranty companies. Still, many drivers wonder if getting an extended warranty for their car is worth it.

Extended car warranties aren’t cheap and most people don’t use them

One of the reasons some people don’t buy extended car warranties is their price. Naturally, the amount of coverage needed for a vehicle isn’t going to be cheap, but this can be off putting for many. According to Market Watch, the average cost of an extended car warranty from a dealer or third party company ranges from $1,152 and $6,192. Of course, this depends on the vehicle and type of plan.

Consumer Affairs reports that about 37% of car owners have extended warranties. However, the same survey found that only 10% of people with these types of car warranties used them. It should be noted that other surveys had more favorable results for getting an extended car warranty from companies or manufacturers.

Extended car warranties from companies and manufacturers have pros and cons

There are many reasons why some people decide to get extended car warranties and there is also justification for those who elect not to. In many ways, it does come down to your budget because as mentioned, extended car warranties are not cheap. Drivers also have to be aware that third party extended warranty companies can also have other fees. Still, prices aren’t the only pros or cons.

Pros of getting an extended warranty

We love our cars, but they can be unpredictable. This means that a person could go out and buy a vehicle that’s won all sorts of reliability awards and still have issues that arise after the standard warranty ends. Because of this, car warranties offer peace of mind. This is even the case if you never use the extended warranty.

This is especially true for drivers who may not have the income needed for a significant repair but can afford the cost of extended vehicle coverage. Still, people should weight their options against their needs for extended car warranties

Cons of getting extended coverage

There are also many downsides to these types of warranties. Many of them have to do with the cost, but there are also others that potential buyers should be aware of. For starters, these warranties don’t cover all damages, and protection for your car from companies rather than the manufacturer is even worse for this as their contacts exist to protect them.

For example, this expensive coverage may not include the cost of a rental car. This is important because your vehicle could be in the shop for an extended timeframe. Naturally, they don’t pay for repairs resulting from car accidents, theft, or natural disasters. Additionally, there are many reasons third party car warranty companies could void your coverage. Plus, they don’t last forever.

Overall, the decision to get these types of car warranties depends on the driver in question. If you have the money for an extended warranty and believe it could come in handy, many people would agree with you. Additionally, if a major repair would be impossible on your budget but you can afford coverage, it could also be a great idea. Still, many people elect not to get extended coverage.

Apr 21

Common Reasons the Warranty for Your Car Could Be Voided

The warranty in a new car can be voided for a number of reasons.

Understanding the warranty is a significant aspect of owning a new car. This is because it offers protection if something goes wrong. Of course, most people stick with the included warranties. However, there are also car warranty companies that provide third-party coverage. This is important because even the best cars can have issues within the first few years of ownership.

Reasons your car warranty could be voided

Buyers should also know that some actions and circumstances could lead to the voiding of a car warranty. This means you’re on the hook if something does go wrong with your new car. One of the easiest to understand reasons is if you’re involved in a severe car accident that results in a salvaged title. This happens because even if you can use the car after the accident, there’s a high likelihood of future issues that stem from the accident rather than any defects.

The car warranty is one of the most important parts of a vehicle
A car in a flood | igorcorovic via iStock

Misusing the vehicle is another reason. This can be due to racing or using the car to compete in other ways. Additionally, going off-road in a vehicle not intended for this purpose can end in the same result. It can also happen from overloading the car, which includes towing.

Unfortunately, damage from environmental factors such as floods, storms, and earthquakes can cause an owner to lose their car warranty. The same is true for tampering with the odometer because it would make it impossible to determine the amount of miles you’ve driven the car.

Types of car warranties

So, what is a car warranty? Warranties protect the customer from the financial burden that can come from vehicle defects. These would be issues that wouldn’t come from wear and tear. Of course, these issues can often be expensive. Because of this, many people consider how long the warranties last when deciding on a new vehicle. Unfortunately, some of the best cars don’t have the best coverage.

There are seven main types of car warranties from companies:

  • Comprehensive or bumper-to-bumper warranty- As the name suggests, it covers every aspect of your new car
  • Powertrain Warranty- This covers the mechanical aspects of your car.
  • Restraint Systems Warranty-Covers seat belts and airbags.
  • Corrosion- Typically covers replacing body panels that are rusted through. Requires severe corrosion in most cases.
  • Emissions Warranty- Covers aspects of a car that limit emissions. These vary state to state.
  • Warranties specifically for hybrid and EV components
  • Extended Warranties- They take over coverage once the manufacturer’s warranty expires and come at an extra cost.

Of course, there are also car warranty companies. These are third-party options that vehicle owners can acquire if they’d rather seek coverage elsewhere. This can be a good option because they are less restrictive and sometimes offer features such as roadside assistance. According to Consumer Affairs, about 23% of warranty buyers go through third-party car warranty companies.

Warranties add value to even the best cars on the market. However, buyers should be sure to read all contracts to ensure they’re not committing behaviors that could cause them to lose coverage.

Oct 18

The Crucial Role of Comprehensive Car Warranties in Vehicle Ownership

Essential Benefits of a Reliable Car Warranty

Owning a vehicle involves more than just driving; it requires a safeguard against unexpected expenses, which is where a robust car warranty comes into play. A quality warranty isn’t merely a perk—it’s a vital component that protects owners from costly repairs and defects. This protection can significantly ease the financial burden associated with maintaining a vehicle over time.

Why a Good Warranty Matters

A solid warranty ensures that major vehicle components, such as the engine, transmission, and electrical systems, are covered in case of malfunction. This coverage is pivotal because repair costs for these critical parts can be prohibitively expensive. Moreover, a comprehensive warranty can enhance the resale value of the car, as it is often transferable to subsequent owners, making the vehicle more appealing to potential buyers.

The Long-Term Value of Warranties

Investing in a vehicle with a substantial warranty offers long-term benefits, reducing the total cost of ownership and providing peace of mind to the vehicle owner. It reflects the manufacturer’s confidence in the quality and reliability of their vehicles, which can be a significant deciding factor for buyers. As such, when purchasing a new or used vehicle, evaluating the warranty offerings can be as crucial as assessing the car’s performance and aesthetics, ensuring that the vehicle is both a practical and financially sound choice.