It’s an age-old question for car buyers: Is getting an extended warranty worth it?
The debate rages on whether an extended warranty for a used or new car is worth the money. While some point out that it’s an added expenditure, other car owners have stated emphatically that it has saved them thousands. So, whether you want peace of mind or added protection, an extended warranty may be a good fit for you.
However, we are not here to hard-sell you on an Extended Warranty, we’re here to support you through the process and to give you all of the information you need to help make an informed decision.
It’s PURPOSE OVER PROFITS
Here’s what you need to know when making your decision.
Average Car Repair Costs
Understanding the cost of common repairs can help you decide if an extended warranty is a good idea. While the model and type of vehicle you have will significantly influence the price of repairs, the bottom line is that repairs are almost inevitable with any vehicle.
Here’s an example of average repair costs for two top-selling models: the Mercedes-Benz GLC 300 and Toyota Camry:
Mercedes-Benz GLC 300
Toyota Camry
Any way you slice it, repairs aren’t cheap. It’s also worth noting that vehicles today with electronic systems are better candidates for extended warranty as these tend to break and can be costly to fix as well.
An extended warranty provides a safeguard against unexpected or unforeseen expenses. An extended warranty carries value if you don’t have the budget for expensive repairs further down the line.
Both Powertrain and Comprehensive coverage is included in the Extended Warranty Package.
A powertrain warranty covers any mechanical defect as a result of the manufacturing process. This includes the engine, transmission, and driveshaft.
The comprehensive warranty covers the other components of your vehicle not included in the powertrain. Examples of what’s covered might include the:
That said, the Extended Warranty coverage does not cover normal wear and tear items including:
Extended warranties cover the major components of your vehicle, including the engine, transmission, gaskets, and axles. In a way, an extended warranty can act like an insurance policy since you pay a predetermined deductible for necessary repairs to these parts of your car.
Our Extended Car Warranties also include Roadside Assistance. Roadside Assistance includes services like towing your vehicle from the side of the road to an auto shop or bringing you a tank of gas if you’re stranded. Roadside service also covers assistance with flat tires and dead batteries.
One of the foremost reasons to buy an extended warranty is if there is not much remaining manufacturer’s warranty on the vehicle you are purchasing. You should also scour the internet for reviews on the car model you wish to purchase. If you consistently see that the transmission fails or the car has other issues just after the 60,000-kilometre range, an extended warranty makes sense.
Keep in mind that the likelihood of repairs can increase over the life of a vehicle. At around 100,000 km, the incidence of repairs goes up exponentially. That’s when an extended warranty gains value. Mechanical parts start to break down, and the likelihood that you’ll need repairs increases. As a result, an extended warranty can cover these repairs so you don’t have to pay out of pocket.
Extended car warranties are a good idea for many drivers, but not everybody will see the same benefit. To help you decide whether an Extended Warranty would be a good idea, you should ask yourself a few questions before you commit to a plan. These questions include:
An extended warranty is worth your time if your car isn’t extremely reliable and you wouldn’t necessarily be able to pay for major repairs right now. If you purchase a used car from a dealer, an extended warranty could be the right choice if you’re uncertain about a vehicle’s reliability. Additionally, a warranty could be worth the cost if you know that your car is prone to specific types of problems, like transmission issues.
For some drivers, an extended warranty offers peace of mind. If you feel more comfortable on the road having a warranty, it’s worth it.
Many people buy an extended warranty and never use it. There are no refunds or reimbursements for not using an extended warranty, so some feel they’ve lost money when they buy one without using it.
Keep in mind that you could accidentally void your warranty if you don’t stick to the warranty’s maintenance schedule. You could pay for a warranty only to learn that you’re no longer eligible for services because you missed an oil change or tuneup, neither of which is covered by the warranty. The same applies if you have a trustworthy mechanic you’d like to use who doesn’t work at the local dealership or an authorized repair shop.
You should also think about how long you plan to keep your car. For example, you may not need an extended warranty if you only plan to keep your car for one or two more years. If you want to keep your car running for as long as possible, that extended warranty could be useful.
Whether you should buy an extended car warranty is a personal decision. While many drivers never use a warranty, others are glad to have the extra coverage.
As stated at the outset, we are not here to hard-sell you on an extended warranty but most importantly, we are here to support you through the process and to give you all of the information you need to help make an informed decision.
In addition to supporting you in understanding the extended warranty detail so you can make a well-informed decision, Ecky’s Platinum Autos will also discount any Extended Warranty Coverage Package you choose by 20% — to make it more affordable for you.
It’s PURPOSE OVER PROFITS