Every car today rolls out with warranty coverage. But why is it recommended to go for a vehicle extended warranty?
What is Vehicle Extended Warranty?
A warranty is a written assurance, which states that the company will repair or replace any faulty parts of the car, with some limitation. Vehicle Manufactures have different warranty schemes, ranging from 1-year/40,000 km to 3-year/unlimited km.
But the warranty expires once it reaches the due date. What does one do when the period expires? Hence, this is where the extended warranty comes in.
Vehicle extended warranty is nothing but an additional warranty that you can buy when you purchase the car, or a while the extended warranty before the due date. This provides the same facilities that the standard warranty provides.
Why do we need a vehicle extended warranty?
In some cases, the extended warrantee helps you earn a better resale value of your car. Availing of extended auto warranty services is dependent on the ownership plan of the owner, if you plan to use and sell the car within its standard warranty range and then sell it, you can forgo the vehicle extended warranty plan. But if you want to use it for a long period of time then we recommend you to avail vehicle extended warranty. You may face mechanical failures after 2-3 years; this is where the extended warranty helps in.
How to buy it?
Buying the vehicle extended warranty is an easy work you can avail of the extended car warranty scheme through any of the manufactures or dealers. Sometimes 3rd party offers provide better offers. It’s safer and recommended that you buy the extended warranty scheme at the time of the purchase as you might get a better deal. Usually, you can buy the scheme before the standard warranty expires. While buying the scheme do check in the coverage schemes and terms and conditions. Sales guys will try and rope you in by offering you a highly tempting deal.
Best Extended warranty companies:
- Droom auto warranty services:
Droom provides multiple options for a warranty that matches your requirement and budget. It cares about your wallet. Droom states that you don’t have to worry about huge unexpected bills, it provides warranty offers and maximum coverage that includes engine, heavy parts of the vehicle, and many more.
- Hyundai Extended warranty service:
HMIL (Hyundai Motor India Limited) states that under the warranty extended service it undertakes to carry out the necessary remedial work in case of any mechanical or electrical breakdown.
What does the scheme cover?
It usually depends on the vehicle manufacturer and also the model of the vehicle. The scheme usually covers the engine and electrical damage. In case, of any replacement, the labor charges are covered. It is even better to check the third-party schemes as they might end up providing you with better services and offers. However, it is a smoother and easier way to get the vehicle extended warranty from the manufacturer.
What isn’t covered?
You cannot avail of the vehicle extended warranty for general services of the car. As stated earlier the scheme cannot be used for parts like brake pads, suspension, cutch and parts that aren’t covered by the manufacturer. Rust, paint wear out and any other won’t be covered either by the warranty scheme. Earthquakes or any natural calamities, servicing the car outside the recommended service centre’s, modifying the electronics, scratches, and some more are outside the purview of the vehicle extended warranty.
Buying a vehicle extended warranty is always useful and has its known pros and cons as well.
Pros of extended car warranty:
- Drive your car for longer:
Want to drive your car for a longtime? Investing in an external vehicle extended warranty might be the best way. Repairs can be expensive and it discourages you from driving your car, and sometimes repairs can interfere with your car safety. Vehicle longevity is very important as it gives your car an extra life and also takes good care of your vehicle. It basically auto protects your car.
- Pocket friendly:
According to a recent census, people spend more than 40,000-50,000 on car repair bills. The annual repair cost has increased by 9.9 percent by 2019 and 2020. With the upgrading of technology, repair costs have increased rapidly. The extended warranty helps in reducing your expenses on your car as mentioned earlier.
Cons of extended car warranty:
- You have to wait for your coverage to kick in:
The vehicle extended warranty doesn’t cover the pre-existing issues, the waiting periods are added in to make sure that the vehicle is working properly before the coverage begins. Therefore, it means that the auto extended warranty doesn’t cover the initial 30 days of your car; or 1000 miles after the purchase.