When financing or leasing a car, you will have to choose the best warranty cover for your investment. A warranty cover gives you peace of mind as you can enjoy your drive confidently, knowing that you are safe from calamities. Most vehicle manufacturers usually offer limited and powertrain warranties. The powertrain is more comprehensive and covers components like engine, driveshafts, transmission, suspension, crankshafts, timing belt, and gears and pistons, among other parts depending on the manufacturer.<\/p>\n\n\n\n
The sad part about manufacturer warranties is their short period and short mileage coverage. Very few manufacturers offer warranty covers that run for over five years, which brings the question; should I buy extended warranty on new car?<\/p>\n\n\n\n
Whether you should buy an extended warranty on your new car will depend on the ownership type and your manufacturer’s cover duration. You will probably not need an extended warranty if you are leasing a car for two years<\/a> as it is fully covered by the manufacturer’s warranty.<\/p>\n\n\n\n Nevertheless, you need an extended warranty on your car if the manufacturer’s warranty cover is shorter than the years you want to own the vehicle. This article on should I buy extended warranty on new car looks at the extended warranty benefits and cons and the options available for vehicle buyers.<\/p>\n\n\n\n Before you start shopping for an extended warranty, we advise you to have a thorough look at your manufacturer\u2019s warranty fine print and limitations. Although newer cars are less likely to need repairs, it is worthwhile to ensure that your car has full warranty coverage during your ownership. <\/p>\n\n\n\n You may not need an extended warranty if your manufacturer offers a long warranty and unlimited mileage or if the manufacturer warranty is adequate to cover your ownership contract. Nonetheless, buying an extended warranty is a no-brainer upon the manufacturer’s warranty expiry.<\/p>\n\n\n\n Although the benefits of purchasing an extended warranty outweigh the cons, there are a few disadvantages you should consider.<\/p>\n\n\n\n The types of extended warranty covers vary among the issuing companies. You will most like access to manufacturer extended warranties, dealership extended warranties, and third-party extended warranties with varying terms and conditions.<\/p>\n\n\n\n The manufacturer extended warranties are available to individuals who would like to extend the original car warranty. Almost every major car manufacturer allows buyers to purchase extended cover warranty covers that prolong the repair and maintenance service beyond the mileage and years covered by the original warranty. <\/p>\n\n\n\n The extended manufacturer car warranties usually cover the same parts included in a new car warranty, but you may choose additional benefits like roadside assistance<\/a>. Depending on the manufacturer and your selection, you can have an extended warranty with or without a deductible.<\/p>\n\n\n\n Dealership warranties are the least attractive of all three types. Although they may be cheaper, they are more restrictive and offer less protection than other extended warranty options. Furthermore, most dealerships only require you to use their repair shops, which can be inconvenient.<\/p>\n\n\n\n Third-party companies offer the best value with highly flexible extended car warranties. The companies offer multiple types of warranties, which enable you to choose what you need. You can customize your warranty coverage to ensure the best protection for your car without paying for unnecessary options. You also have a wider selection as most third-party warranty companies offer multiple options with different years and mileage.<\/p>\n\n\n\n Learn More:<\/strong> Best Extended Warranty for Used Cars<\/a><\/p>\n<\/blockquote>\n\n\n\n Before you buy an extended warranty coverage for your car, it is important to know what you are buying, factors that will determine the coverage, and the service provider. Keep in mind that every company and warranty coverage is unique. Some of the things you should know before choosing a third-party warranty company include:<\/p>\n\n\n\n Review fine print and contract terms to know what the warranty covers<\/strong><\/p>\n\n\n\n That said, some of the best third-party car warranty providers you should consider include;<\/p>\n\n\n\n Endurance<\/a> is a popular extended car warranty provider with eye-catching products for newer and older cars. The company offers four warranty products; premier, secure, superior, and supreme for cars dating back to 1958 and with up to 200,000 miles. All Endurance warranty plans come with a one-year elite membership that offers several benefits such as tire repair\/replacement, ID theft protection tools, and 24-hour roadside assistance. <\/p>\n\n\n\n The membership further gives you access to repair finance options of up to $5,000, key fob placement, and personal assistant. In case of trip interruptions, Endurance offers $150 reimbursement per day for three days.<\/p>\n\n\n\n It is also worth pointing that Endurance does not have a betterment clause that limits the use of parts that might improve the performance of your car. The warranty allows you to purchase a better part to replace a cheaper component. <\/p>\n\n\n\n However, the company has a consequential loss clause that means the warranty will not cover parts damaged by uninsured parts. Endurance provides 24\/7 claims processing and a host of options for choosing a mechanic. The company has an extensive network with almost all dealerships and over 350,000 accepting Endurance warranty.<\/p>\n\n\n\n Highlights<\/strong><\/p>\n\n\n\n Carchex<\/a> has the largest extended warranty coverage options with a total of 16 plans. The silver plan is equivalent to a powertrain warranty while the platinum option is similar to bumper-to-bumper coverage<\/a>. The gold tier is for cars with about 60,000 to 100,000 miles range, but older vehicles with up to 125,000 miles can get an exception. Carchex has some of the longest terms available for a third-party company with most plans term ranging from five to ten years. <\/p>\n\n\n\n Nevertheless, it is worth noting that Carchex is not a direct provider but a broker of warranty covers. The Carchex warranty covers are by Royal Administration Services and American Auto Shield companies.<\/p>\n\n\n\n Beyond the standard plans, Carchex further offers optional coverage and additional benefits. The titanium cover has the widest selection of optional coverage, but they vary by provider. For example, the American Auto Shield warranty cover provides a $100 labor rate ceiling per hour for repair facilities and the flexibility to switch to a facility with lower charges. <\/p>\n\n\n\n The benefits also vary by the provider with the Royal company $35 reimbursement limit per workday with $175 maximum breakdown reimbursement. The American Auto company offers $40 reimbursement per workday with a $160 breakdown maximum. For roadside assistance, the American Auto covers up to $400 while the Royal Administration breakdown limit is $320.<\/p>\n\n\n\n Highlights<\/strong><\/p>\n\n\n\nShould I Buy Extended Warranty On New Car?<\/h2>\n\n\n\n
Pros of an Extended Warranty<\/h3>\n\n\n\n
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Cons of an Extended Warranty<\/h3>\n\n\n\n
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Different Types Of Extended Warranty<\/h2>\n\n\n\n
1. Manufacturer Extended Warranty<\/h3>\n\n\n\n
2. Dealership Extended warranties<\/h3>\n\n\n\n
3. Third-Party Extended Warranty<\/h3>\n\n\n\n
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Which Third-Party Company Offers The Best Extended Car Warranty?<\/h2>\n\n\n\n
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1. Endurance<\/h3>\n\n\n\n
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2. Carchex<\/h3>\n\n\n\n
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3. Concord Auto Protect<\/h3>\n\n\n\n