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What Is an Extended Car Warranty?
An extended warranty covers the some or all of the cost of your vehicle repairs.
What Are Manufacturers Warranties?
Manufacturers warranties often cover these components, as well, but they dont usually apply to older cars.
Most new vehicles come with manufacturer warranties that provide bumper-to-bumper and powertrain coverage.
Manufacturer warranties only last for three years or 36,000 miles, whichever comes first.
Extended Warranty vs. Manufacturers Warranty: Whats the Difference?
Common types of extended warranties include:
Are Extended Car Warranties Worth It?
A warranty essentially helps you budget for surprise repairs by spacing out the warranty costs monthly.
How Much Does an Extended Warranty Cost?
An engine replacement can cost between $2,500 and $15,000,according to CarBrain.com.
Keep in mind an extended warranty doesnt cover damage due to accidents, negligence or normal wear-and-tear.
Should You Buy an Extended Warranty on a Used Car?
Todays cars are designed to last 200,000 miles without a catastrophic breakdown,according to Progressive.
However, the odds of components breaking before that time increases as the vehicle ages.
What Does Certified Pre-Owned Warranty Mean?
Most CPO warranties only last for one year or 12,000 miles.
After that, youd need to purchase a third-party warranty if you want to extend your coverage.
What Is a Dealership Warranty?
Like CPO warranties, they often require that you have the vehicle repaired at the dealership.
They might also have shorter terms, limited coverage and additional fees.
If the extended warranty cost is rolled into your auto loan, youll also pay interest on the warranty.
Choose an extended warranty based on your budget, driving habits and the features you want.
These might include such as transferability, coverage inclusions and exclusions and deductibles.
Take your time choosing a warranty company, because its a big, long-term investment.
You dont want to regret your decision down the road.
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