One of the benefits of leasing a car is how people can enjoy driving a new but only paying a fraction of the vehicle’s total value. Although there are several limitations like limited mileage, high insurance cost, the difficulties of canceling the contract, and many more, there are still advantages that a car lessee can enjoy. Nowadays, there are different ways on how to maintain leased cars in perfect condition. One best example is getting an extended car warranty to maintain car components and help car lessees to cover car repair bills.
What is an extended car warranty?
An extended car warranty, also known as a vehicle contract is a contract between car owners and car warranty providers. It’s designed to help car owners cover repairs from any components that are included in the warranty list. There are different types of extended car warranties that can cover the specific needs of a vehicle, such as maintaining the engine, replacing busted airbags, fixing electrical components, and many more.
Should you get an extended car warranty for a leased car?
Whether you lease or own a car, maintaining a working car is one of the responsibilities that everyone should prioritize. There are different ways to maintain a car, one example is the car warranties that are being offered by car manufacturers and authorized third-party providers. Purchasing an extended car warranty can cover any car repairs after the manufacturer warranty expires.
If you lease a brand new car for 5 years and it’s 3-year manufacturer warranty expires, you’ll be required to shoulder the car repair fees for the remaining years. Getting an extended car warranty for a lease car will solely depend on the terms you choose. For a lease car with longer terms, it’s recommended to get one as it will help to avoid expensive car repairs in the future.
Advantages of getting an extended car warranty
These plans are very similar to factory warranties. Extended auto warranties also cover the engine, transmission, drive components, and many other parts. Some extended warranty plans also cover wear-and-tear which isn’t usually covered by factory warranties.
Purchasing an extended car warranty will not only cover your car repairs but will also give tons of benefits that you can enjoy in your car. Some manufacturer’s warranties exclude the wear-and-tear which extended warranties cover.
Here are some advantages that you can get from extended car warranties:
- You don’t have to worry about repair prices: As long as the components that need to be repaired are included in the warranty list, you will no longer have to worry about the repair fees. Also, look for warranty providers that pay car repairs directly.
- Lower premium rates: There are providers that offer lower premium rates for leased cars compared to brand new cars.
- Rental cars provided: one of the perks of having an extended car warranty is the free rental cars that can be used while your car is under repair.
- Roadside assistance and trip interruption benefits
- Protection against the price inflation of car parts
- Freedom to take your vehicle to any licensed repair facility
- Multiple options for service repair centers
Although it may sound like car insurance, extended car warranties are designed to cover any damaged parts that don’t come from accidents or collisions.
Different types of extended car warranties
Dealer Extended Car Warranties: one benefit of getting a lease from a car dealer is they can offer dealer extended car warranties which are helpful when the manufacturer’s warranty expires.
Powertrain car warranty: this type of warranty covers the most expensive car repairs in the car industry. The driveshaft, engine, torque converter, transmission, and suspensions are examples of parts that are included in the powertrain warranty.
Exclusionary car warranty: this is the most comprehensive car warranty that providers can offer. Instead of listing all covered items, the exclusionary car warranty lists all excluded items in the policy list.
Stated Component: Unlike the exclusionary car warranty, the stated component car warranty lists all car components that are covered in the policy. If a car component is not included in the list, then it’s considered not covered by this policy. It’s also the second-highest level of coverage that covers a great number of components for your car.
Wrap: this type of extended car warranty covers the items that weren’t included in the powertrain warranty. Also, the wrap car warranty can be used for a certain time or mileage. When powertrain and wrap warranty combined, it’s basically the same coverage you get from the exclusionary car warranty.
If you still have doubts about getting an extended car warranty for your leased car, it’s highly recommended to get a lease term within the manufacturer’s warranty coverage. This will keep you from costly car repairs that could ruin your financial management in the future. Also, always remember that you’re only “borrowing” the car for a certain period of time and think wisely if it really needs specific car protections or not.