Here are a few frequently asked questions consumers have about extended warranties. Visit CARCHEX to get a full list of advice and FAQ’s about extended vehicle and protection plans.
What is a Vehicle Service Contract/Extended Warranty and why do I need one?
Every new vehicle comes from the manufacturer with a factory warranty. This states that the manufacturer will repair or replace most parts of the vehicle if something were to happen for a limited amount of time or miles. Once this warranty expires, there is nothing to protect you from expensive vehicle repairs. An extended warranty assures that you will be paid for covered parts on your vehicle for an extended amount of time and/or mileage. With the average length of vehicle ownership rising, the risk of costly repairs is rising as well. An extended warranty helps you avoid expensive repair bills.
Can I get this kind of protection through my dealer or manufacturer?
You could, but plan on paying a lot more. You’re better off getting it in the after-market from an extended car warranty company, where you can save money and get better coverage.
I still have time left on my factory warranty. Why purchase a service contract/extended warranty now?
The best time to purchase an extended warranty is while your vehicle is still covered by the manufacturer’s warranty. The more factory warranty you have remaining, the lower the cost and greater the length of the warranty extension. Also, the cost for an extended car warranty will rise as your vehicle ages and mileage increases. The newer your vehicle is, the better the warranty rates and terms will be.
What if I sell my vehicle?
If you sell your vehicle, your coverage is transferable. Extended Vehicle Protection can greatly increase the resale value of your vehicle should you ever choose to sell it.
How do I purchase an Extended Warranty?
Visit CARCHEX to get the full scoop on extended warranty options for your vehicle.