Understanding an Extended Auto Warranty
When someone goes to the dealership for a new car, they are most likely going to be offered an extended car warranty. Many people are automatically inclined to turn the offer down because they do not want to spend additional money, but they should know what they are about to decline. This type of warranty can be the most important purchase a new car owner makes.
Some people turn down the extended warranty because they do not really understand what is being offered to them. An extended warranty covers repairs on the vehicle for a certain amount of time, usually up to one hundred thousand miles driven. To truly understand the terms of the warranty, the driver should be sure that they understand all of the professional jargon that appears in their contract and ask any questions they may have.
It is very important, when purchasing an extended warranty, to be very clear about exactly what it does and does not cover. If the plan only includes coverage for breakdown, it will only pay for repairs due to parts that actually break. Many people decide to go with wear and tear coverage because it covers repairs to do the simple wear on the car as it spends more and more time on the road. Drivers must think about their anticipated car issues and be sure that they are prepared for any situation.
It is important to have this type of warranty, not only to handle repairs on the car, but also in the event that the driver wants to resell it down the line. When a car has been continuously under warranty, the potential driver knows that the owner has taken the proper care of the car over the years. They are far more likely to purchase a car when they know that money did not deter the previous owner from taking good care of it.
Some drivers think that they can use their manufacturer’s warranty and simply purchase the extended warranty when that wears out. The problem with this is that the cost of the warranty will increase the longer the car is on the road. The extent of coverage is always the same, so there is really no benefit to waiting until a later date to purchase the warranty.
Many drivers decline offers to purchase an extended auto warranty because they do not completely understand the offer before them. This type of extended warranty can cover a variety of issues that may come up with the car at a far lower cost than the owner would otherwise pay. This is an important purchase that no new car owner should go without.
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