You probably feel the time has to come to sell your old car and obtain a good price for it. By adding a little extra money to the sales proceeds, you can afford to buy one of the latest car models. At the time of purchasing this new car, you will get a standard factory warranty from the automobile manufacturer. It covers the costs of expensive repairs you might have to incur in the event of mechanical failure. However, this factory warranty is generally for a specific time period according to its terms and conditions. Then you might have to buy an extended warranty from a reliable third-party company if you wish to enjoy the same benefits in the future.
Best extended warranty – Its salient features
An extended warranty is a car maintenance plan which you can choose to buy to pay for the cost of certain unforeseen repairs on your new car. These include damage resulting from defective workmanship, faulty parts, substandard materials, and rust. In some cases, it also includes roadside assistance in case of mechanical breakdowns during a trip. However, an extended warranty does not cover day-to-day maintenance expenses like oil changes, replacing old tires, and purchasing new brakes. This coverage plan normally comes into effect only after the original factory warranty from the manufacturer expires. When buying an extended warranty for your new car, you should consider the following factors:
- An extended warranty is worth buying if you have no intention of replacing your new car after four years or more,
- You need to thoroughly read the fine print of the warranty document to understand the hidden points of the whole coverage it provides,
- You have to ensure the third-party company offering to sell the best extended warranty has a good reputation in the market,
- The premium cost of the extended warranty which you intend to buy should be proportionate to coverage it offers, and
- Buying an extended warranty is a worthwhile investment if you live in an area where traffic congestion is a serious problem.
You might be spending more money than your initial budget by opting for an extended warranty on a new car. However, you get to enjoy the following benefits:
- Buying an extended warranty helps you to save money as it covers the costs of unforeseen repairs and replacements,
- Opting to buy an extended warranty for your new car increases its resaleable value in the market, and
- An extended warranty safeguards the investment you make in your new car when it is not in good working condition.
Buying the best-extended warranty for your new car might be a wise decision for you. It can save you from spending a large sum of money on costly repairs and replacing essential auto parts. The warranty even boosts the re-saleable value of the car when you actually sell it after four years. However, before purchasing an extended warranty, you should read the document thoroughly to understand its coverage. Moreover, a reliable third-party company should offer to sell it to you. Above all, the premium cost of the warranty should be proportionate to its coverage. Only then can you get value for money and alleviate tensions in the future.