An extended car warranty—whether for a new or used car—can save you money on a vehicle’s expensive repair costs. Depending on your provider, different coverage plans allow you to customize your extended warranty to meet your needs.
Learn how an extended car warranty can benefit you and if it is better to buy a warranty from a dealership or a third-party company. Compare different car warranty companies to determine which brand is the best choice for you, and speak to a representative to get a free quote from CARCHEX.
An extended car warranty provides peace of mind to car owners. By purchasing an extended warranty—also called a vehicle service contract or vehicle protection plan—you safeguard yourself from the expenses of car repairs—similar to how a home warranty can save you money when appliances break down. This is especially beneficial because as vehicles age, the likelihood of needing repairs increases. Additionally, once a manufacturer’s warranty on a car expires, the average repair costs can skyrocket.
Purchasing an extended auto warranty may help reduce the cost of repairs over time. To determine if adding an extended warranty to your new or used car is the right choice for you, there are several factors to consider. Once you decide you need a warranty, then you can choose between the different types of warranties and coverage levels available.
Need guidance while shopping for a vehicle protection plan? A representative from CARCHEX can answer your questions and provide a free quote. Call 866-261-3457 today.
Many drivers may not realize the potential savings offered by an extended car warranty, but they can help you:
Almost every new car will come with a factory warranty from the manufacturer. Many times, this manufacturer’s warranty has fine print and limitations. While a new car is less likely to need repairs, it can still be worthwhile for a new car owner to purchase an extended warranty once the manufacturer warranty expires. Warranty companies base the cost of an extended car warranty on the vehicle’s age, mileage, make, and model. An extended warranty for a new car with fewer miles can cost less than a warranty for an older vehicle with more mileage.
Buying a used car comes with risks, such as prior care and repairs made to the vehicle, and often doesn’t include a manufacturer’s warranty. There may be underlying issues that will cause the car to break down within a few years of buying it. To combat the costs of their repairs, used car owners can purchase an extended car warranty. If the used car breaks down, you may save hundreds of dollars in repairs.
If you are considering purchasing a used car, consider the following to determine whether an extended warranty is right for you:
There are several types of warranties offered by car dealerships, manufacturers, and third-party warranty companies. Each type provides different levels of coverage and may vary across providers.
usually come with new car purchases. Some manufacturers also offer warranties for cars that have been through a certified pre-owned (CPO) program. The warranty from an auto manufacturer generally covers repairs in the first 3–5 years of the car’s life. Powertrain warranties can last longer. These warranties also have restrictive mileage limits.
are usually restrictive and offer less protection over time than other warranty options. You may be required to use only the dealership repair shop and their choice of parts, which can be inconvenient and more expensive.
offer the best value and most flexibility in extended car warranties. They usually include roadside assistance and other benefits. Third-party warranty companies also offer several levels of protection. Choosing to buy an extended warranty from a third-party provider like CARCHEX allows you to customize your warranty to meet your needs and doesn’t tie you down to a certain manufacturer.
Many car dealerships offer extended car warranties for both new and used cars. By comparing your options, you’re better positioned to make an informed decision.
Extended warranties from car dealerships are known for being restrictive. Short-term lengths and mileage limits prevent car owners from getting the most out of their protection plan.
Buying an extended warranty from a car dealership can also place major limitations on where you can have your car repaired. It is not uncommon for a dealer to require that any repairs made under their extended car warranty be completed by their service center or an approved repair facility. That means you’re limited to their locations. For example, if you purchase a Lexus extended warranty from the dealership, all the repairs are by factory-trained technicians. It’s good to have a mechanic who knows your type of car, but not being able to visit the trusted repair shop down the road can be a real inconvenience if you’re in a fix.
Third-party providers specialize in extended car warranties. Where a dealership is focused on selling as many cars as possible, a third-party warranty company is focused on offering you protection that makes sense for your vehicle. A CARCHEX Extended Vehicle Protection Plan, for example, allows you the freedom to repair your vehicle wherever you like.
Choosing to buy an extended auto warranty from a third-party company also gives you the option of customizing your coverage. A dealership likely only offers a couple of extended warranty options with limited miles and years. Reputable third-party warranty companies provide several coverage levels. CARCHEX even has several plans options within each coverage level.
With 89% of cars on the road today needing some kind of repair or service, an extended car warranty can save you money on those inevitable repair expenses. As you research buying a protection plan, be sure to ask potential providers these important questions. Knowing information about the coverage, cost, and length of contract can help you make the best decision for your extended warranty.
Learning the different coverage options offered by a potential extended car warranty company is the first step in determining what type of extended warranty is right for you. Extended car warranty companies usually provide several coverage options to ensure everyone can find a warranty that meets their specific car’s needs.
For example, an extended warranty may only need to cover major repairs for a few years before the car is sold or traded. A new car owner probably feels more comfortable with a comprehensive bumper-to-bumper warranty to protect their investment and most components of their vehicle.
If you have an older car that needs protection from just the most expensive repairs, a powertrain warranty may be the best fit. Powertrain warranties cover the engine, transmission, and related parts.
Whether you choose a dealership or third-party extended warranty, consider the following:
Extended warranties can cost anywhere from a few hundred dollars to a few thousand dollars. Car warranty providers calculate the cost of a warranty using specific data about each vehicle. Factors such as the make, model, mileage, and age of the vehicle help determine how much an extended auto warranty will cost. That’s why it’s less expensive to add an extended warranty to a car when it’s younger and has fewer miles.
The level of coverage will also affect the cost of an extended car warranty. The more coverage you opt for, the more the extended warranty will cost. Vehicle protection plan providers like CARCHEX take all of your vehicle’s information into account to give you the estimated price of different coverage options.
Some car dealerships or car warranty companies require you to haggle to get the best price. A warranty company that hides the best price from you in the beginning may create headaches down the road when filing a claim. It is best to find an honest warranty provider that doesn’t waste your time with useless haggling. CARCHEX promises a No-Haggle, Low-Price Everyday Guarantee™ for our customers.
Due to the many different factors that go into determining the price of an extended car warranty, it is best to contact your warranty provider and get a quote.
Extended car warranties range in length of contract, lasting from just two years up to 10 years or well over 100,000 miles. Here’s what to consider when determining the length of your coverage:
When looking for the best extended car warranty, a trusted provider can make all the difference. You will want to find a company with a great Better Business Bureau (BBB) rating and endorsements from other reputable businesses in the industry. They should also offer plans that are backed by reliable insurance companies.
The chart below compares some of the nation’s leading car warranty companies.
While companies like Endurance, Protect My Car, Concord Auto Protect, Delta Auto Protect, AutoAssure, and AA Auto Protection provide extended car warranties, they are not BBB accredited. Additionally, many of these companies have been in business less than 15 years. Companies like CARCHEX, for example, have been providing extended car warranties for more than 20 years.
There are many reasons to purchase an Extended Vehicle Protection Plan from CARCHEX:
With five levels of coverage, CARCHEX has an extended auto warranty for every budget and vehicle. Plans range from Titanium—which provides up to 10 years of bumper-to-bumper protection for your car—to Bronze, which protects your powertrain and offers up to six years of coverage for major repairs.
An Extended Vehicle Protection Plan from CARCHEX helps protect your car—and your wallet— for years to come. By comparing our great customer service, A+ BBB rating, and industry endorsements with other warranty companies, it’s easy to see why CARCHEX is a top choice for extended car warranties. We offer five levels of coverage to meet the needs of every vehicle owner.
Find the best extended car warranty for your car by calling 866-261-3457 for a free quote.
Consumer Reports: https://www.consumerreports.org/car-maintenance/the-cost-of-car-ownership/
Car Care Council: http://www.carcare.org/car-care-service-schedules/general-service-schedule/
J.D. Power: https://www.jdpower.com/business/press-releases/2019-us-vehicle-dependability-studyvds
Better Business Bureau: https://www.bbb.org/us/md/hunt-valley/profile/extended-warranty-contract-service-companies/carchex-0011-23015869
These top brands trust and recommend CARCHEX.
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