You’ve just purchased a car. It’s shiny (or at least new to you), it smells like a new car, and it looks new. What happens when the factory warranty ends? You can protect yourself from future car repair costs by purchasing an Vehicle Protection Plans. Let’s look at the details.
To start with, let’s clarify one thing: an extended warranty for your vehicle isn’t a guarantee. It’s like an insurance plan for the parts and systems of your car. You can choose to pay up front or in monthly installments. This sounds easy, right? Hold on, there’s a lot more to the story.
Imagine you are driving along the highway and suddenly, your engine light comes on. As you contemplate the impending bill, your heart skips a few beats. If you have an extended warranty on your vehicle, this sinking feeling may be less intense as some or all costs might be covered.
The next step is where things can get tricky – or interesting, depending on the way you look at them. Not all warranties offer the same protection. Some only cover major parts like the engine or transmission, while other offer bumper to bumper protection. Some policies have so many exceptions that they would make Swiss cheese appear solid.
Tell me about Dave, my friend. He bought an extended guarantee for his SUV and thought that he’d be protected from any mishaps. The air conditioner in his SUV decided to leave on permanent vacation one day during a heatwave. He thought his insurance covered him, but he wasn’t. The fine print had different plans.
Do not get me wrong, these warranties can save your life if you choose them wisely. It’s like dating: you need to find a warranty that matches your needs and lifestyle, without any red flags.
It’s important to read all the fine print. You may think it is as boring to read the fine print, but you’ll be able to avoid unpleasant surprises. Be sure to check what’s included before you sign anything.
Another nugget of wisdom is to consider who backs the warranty–manufacturer or third-party provider? Manufacturer-backed warranties may be easier to get through, but they might cost more initially. Third-party solutions can be more affordable, but they may also have additional layers of bureaucracy.
If you’re someone who swaps cars faster than Taylor Swift changes boyfriends, maybe skip it altogether. If you swap cars faster than Taylor Swift does, then maybe just skip the whole thing!
Extended warranties can come with benefits like roadside assistance, rental car reimbursement or AAA membership. These may sound good at first but you might not be paying for them.
Now let’s get back to money because wallets do matter! The price varies greatly depending on the car model and coverage desired (remember Dave?) Dealers are willing to negotiate, just as they would do at a local flea market.
The short answer is that extended warranties for autos can be a good thing, but may not be necessary for all vehicle types or drivers.
Next time you’re pitched an extended warranty, keep in mind these little tidbits. It’s important to do your research before you buy, and avoid anything that looks like Swiss cheese.
Now, that’s all I have to say! Now, drive safely… and may your engines run smoothly for the rest of time!