Purchasing a vehicle usually comes with the standard jargon. You sit stressed out in the finance manager’s office while he or she lectures you about how much you “need” a warranty for the vehicle you just purchased. Initially, most car buyers feel that a warranty is unnecessary; however, that isn’t the case. A warranty is similar to car insurance. Insurance safeguards your vehicle if you’re in an accident, and an extended vehicle protection warranty cares for your vehicle whenever it breaks down, which they all do at some point. This is why you eventually need an extended warranty.  

Deciding whether to buy a warranty for your vehicle is a major decision that most people don’t think about until the sales manager gives them the option to accept or decline the extended warranty. Here are some things to consider when making that decision.

•Do you have the finances to make an expensive repair if necessary? It may seem far-fetched now; however, cars don’t break down at opportune moments.

•What does the warranty cover? Purchasing an “exclusion policy” is the best choice, because it simplifies everything. This type of policy tells you what the warranty doesn’t cover. If it’s not on the list, it’s covered.

•Does the warranty cover substantial damages? For example, your power steering pump breaks down. This creates problems for the power steering rack. Does the extended warranty include both parts?

•Does the warranty cover electronics or technology like GPS and mobile phones? This is a very important point to consider since most new vehicles have the latest technology already installed. 

•Is there a deductible? Most warranties come with a deductible. This may not be a deal breaker, but it’s something you should know. 

•Where can you get your car serviced? Some warranties allow you to service your car only at specified repair shops. 

•Will the repair payment come directly out of your pocket? A reputable company pays the repair shop directly for your repair. This saves you worry about paying first and hopefully being reimbursed later.

3 Reasons to Purchase an Extended Warranty on your Vehicle

Now that you have an idea of the things to consider when deciding about whether to purchase an extended warranty, here are three good reasons why you should purchase an extended warranty for your vehicle.

1. Economics

You might think that an extended warranty plan is too expensive. However, it’s actually amazingly affordable! First of all, many policies come with a “no fee” payment plan. This means that no tax, interest, or other fees are added to your payment. The average repair bill can be pricey. Extended warranty policies pay for themselves before the first year is up. 

2. Complete Protection

With extended warranty protection for your vehicle, you’re completely covered. In addition to covering the cost of repairs due to a mechanical breakdown, you also receive other benefits. For example, extended warranties include around-the-clock roadside maintenance, battery charges, fuel delivery, towing, flat tire changes, and much more. Some include free rental cars and lodging accommodations as well! 

3. Peace of Mind

An extended warranty is similar to health insurance. Your health insurance protects you in case of illness; your extended vehicle warranty protects your vehicle if it becomes “unwell.” Many car owners reason that if any repair is needed, they will deal with it when the time comes. Unfortunately, it rarely works out that way. Once the car leaves the repair shop, it could break down again, at any moment. With an extended warranty, when one thing goes wrong, you’re still covered if something else breaks down too.     

Overall, purchasing an extended warranty for your vehicle is the more prudent thing to do. With extended vehicle protection, you decrease the anxiety that comes with wondering what to do if your vehicle breaks down!

About the author:

Doug Climenhaga is president of SVI International, Inc., a leading supplier of parts for industrial lift equipment, including brake lathe parts. With more than 20 years experience in the hydraulic and automotive lift industries, he holds two patents and has designed scores of problem-solving products.