Many new car buyers are usually confused when their car agent asks them about what type of extended car warranty they want to purchase. Some buyers think that the factory warranty and the extended car warranty are the same. However, they are completely different as the factory warranty is exclusively offered by your car’s manufacturer and dealer. As there are many extended car warranties in the market, are they worth investing in for your car?

What are Extended Car Warranties?

Extended car warranties are vehicle contracts that cover any costs from car repairs after the factory warranty expires. Although car manufacturers don’t force any car owners to purchase extended car warranties, there are many factors that should be considered for your car. Some car repairs can cost you thousands of dollars like engine repairs, complete transmission overhaul, and replacing busted airbags that’s why extended car warranties are being offered by car manufacturers and authorized third-party companies.

Are Extended Car Warranties necessary for new vehicles?

One of the benefits of getting an extended car warranty is the peace of mind that it can give to car owners. Many car manufacturers offer exclusive extended car warranties right after purchasing a new car. However, extended car warranties purchased from manufacturers limit the authorized car repair shops.

There are many factors to consider when choosing an extended car warranty that suits your car’s needs. Most car manufacturers offer factory warranty that can be used up to 5 years and/or 60,000 mileage. If you’re planning to drive your car for more than 5 years, then getting an extended warranty is a good investment for your car.

Factors to consider before getting an extended car warranty

The main purpose of getting an extended car warranty is to help car owners deal with different major and minor car repairs. Here are the different factors that you should consider to help you decide whether to get an extended car warranty or not. 

  • Type of Car: Some cars are much more expensive to cover with extended car warranties than others. For example, a common type of car like sedans can be equipped with less expensive extended car warranties compared to commercial vehicles.
  • Driving History: Some car warranty providers first examine the driving history of a vehicle before offering an extended car warranty. It means that they consider how car owners treat their vehicles and the probability of having an accident, which you can get from accident-prone roads.
  • Age of Car: When getting an extended car warranty, manufacturers and providers consider the age of the vehicle — both year and mileage. It’s one of the factors that gauge the condition of the vehicle and the type of extended car warranties that car owners should get.
  • Coverage Scope: It’s recommended that all car owners conduct a vehicle check-up before considering an extended car warranty. There are different plans that can cover the components of a car. For example, a comprehensive plan can cover almost all components of a vehicle but is much more expensive than a basic plan.
  • Extra perks: Different perks are included when buying extended car warranties like roadside assistance and travel breakdown protection.
  • Length of the Warranty: Basically, all extended car warranties that have longer coverage are more expensive than the car warranties with shorter terms.

Even though car manufacturers don’t require car owners to buy extended car warranties, it all comes down to the car owner’s needs. If you’re driving in an accident-prone area or a rough road, then getting an extended car warranty will be beneficial to you. Any costs from car warranties are solely dependent on the vehicle and its purpose.