A service contract or an extended warranty is not beneficial all the time so it is better to consider the advantages and disadvantages before buying it for the vehicles
FREMONT, CA: From cars to pricy electronics, all these products often come with an extended warranty. The idea of buying an extended warranty is excellent and beneficial in some cases but not worth in other cases. The buyer should go through all the terms, conditions, pros, and cons before buying it.
What Is a Car Extended Warranty?
An extended warranty on a vehicle, also known as a vehicle service contract is an optional plan for the buyers. It is a type of coverage that covers certain repairs and usually begins when the manufacturer's warranty expires. These are generally purchased to cover cars that are no longer protected by the manufacturer's original warranty. Different providers provide different vehicle service contracts. The protection with varying levels is offered to the owners according to their needs and willingness to pay. The worth of extended warranty depends on the car if the car is new or certified pre-owned, so the vehicle is likely covered by some form of manufacturer power train warranty. The used cars demand repairs that an extended warranty can take care of it. Most of the buyers appreciate buying a warranty to ensure peace of mind related to the car issues. Extended warranty doesn't cover everything like oil changes, new tires, new brakes and more.
Benefits of a Car Extended Warranty
Convenience and peace-of-mind: A car breakdown situation is really stressful and troublesome. The extended warranty will help the customers by providing services needed at that time. The warranty will repair your car if required and will save money.
Budget protection: The new car buyers get factory warranty for a year or two and save them from spending money on repairs. Most of the buyers prefer extended warranty to ensure similar protection for the vehicle even after the factory warranty time expires.
Improved customer satisfaction: Through buying an extended warranty, the customer can bring their car to the same place they purchased it for any type of major or minor repair and service. The customers can take advantage of existing relationships and can get quality service for their vehicles. It is a win-win situation for both the customers and the owners.
Custom coverage: Depending on the car and driving habits, the customer can easily customize the warranty type.
Higher car value: The car under warranty is likely to be well maintained and in good working order. So extended warranty will provide high trade-in value at the dealership because it will be considered of more importance to the owner.
Drawbacks of an Extended Warranty
Does not cover all the repairs: Before purchasing the extended warranty, the buyer should adequately go through the services covered in that. Most of these types of warranties do not include all types of basic coverage.
Usually not used: Only a small group of people end up using the extended warranty, most of the time it is left unused. In this case, it is better not to spend money on buying an extended warranty.
In addition to the loan amount: Some people buy the extended warranty and roll it into the loan, which increases the total amount of the loan. It is a significant drawback for the buyers.