If your car’s factory warranty is about to expire or if you are buying used, then you should think about an extended car warranty or a CARCHEX Extended Vehicle Protection Plan. These plans cover repair costs when the original warranty has expired. But are Vehicle Protection plans or Auto Warranties really worth it when compared to actual cost to repair? Let’s take a look.
When Factory Warranties Expire
After a new car warranty expires, all repair and maintenance problems are paid for out of your pocket. If you are lucky, you won’t have many problems. However, a car with an expired factory warranty is an older car, and mechanical problems are more likely. At CARCHEX our proprietary data shows that our products may actually save you significant amounts of money when compared to paying for repairs on your own.
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Repairs Cost Money
No matter what, auto repairs have to be paid for. This can happen out of pocket or under factory warranty protection. The beauty of an extended protection plan is that even if you are out of factory warranty and you have large repair problems, the repairs can be covered. Even with plans that have a deductible, you could end up saving thousands of dollars in repair costs.
The Reality Without A Factory Warranty
If you are not covered under factory warranty, you are basically on your own. Who are you going to call for roadside assistance? What about a rental car while repairs are being made? With an extended vehicle protection plan, you get roadside assistance and rental car benefits. These factors are not included in the comparison numbers, meaning you can save even more.
Think Of It As Pay As You Go
The other advantage of a CARCHEX Extended Vehicle Protection Plan is that you can pay as you go. Many people would rather pay monthly instead of getting stuck with a $2000-$3000 repair bill all at once. This also makes household budget planning easier since your car maintenance costs are better defined and planned for.
Or Pay It All Off Now
Other people like to pay for the entire plan up front, in-full. This gives you peace of mind since your car repairs are covered no matter what your economic future holds. If you have the cash available, this might be the best option for you.
Conclusion
Looking at the numbers, an extended vehicle protection plan can be a great way to save money on car repair costs. Add in the security and convenience, and you have a very solid argument in favor of purchasing coverage.
