The process of shopping and buying a new car can be demanding and once you are done with it there is more. Indeed, extended warranty is also part of that process and you need to gather information about it to make the best decision for you and your car.
Therefore, let’s walk through a little explanation of an extended warranty and some useful tips to help you in this shopping process that can often be stressful when you know nothing about it.
What is an extended warranty
Basically, an extended auto warranty is a service that covers the cost of certain parts of a vehicle that are included in the contract. Normally, it comes after the manufacturer’s warranty. However, people can also take the extended one because they want to have extra protection, but the extended warranty is not for everyone because they also come with some extra warranty cost.
The great advantage of extended warranty is that it saves on car repair costs. However, you must keep in mind that it is always an additional expense that the warranty does not cover everything and that it does not last forever.
For example, when talking about basic common brands, the length of a manufacturer’s bumper to bumper warranty is between 3 to 5 years or around 50,000 to 60,000 kilometres.
Therefore, once the initial warranty is over, the extended warranty can be useful if you need additional protection or the same protection for a longer period of time.
What is your situation?
An important aspect to consider when purchasing an extended warranty is to examine your current situation. Before making any decision of buying something, you should establish your needs and try to see what you are looking for.
In fact, before you sign, make sure you know exactly what you are paying for. Look again at what the manufacturer’s warranty covers and for how long. Can you add new things that you think are necessary or can you remove things that you find irrelevant? Do you need roadside assistance or does your insurance company already offer it?
Finally, make sure you know what the extended warranty will cover and what it won’t and whether you can cancel the warranty at any time or if the warranty is transferable.
Useful tips when choosing your warranty
When shopping or buying new things, it is important to gain a little bit of knowledge before doing so. Here is some useful information when buying an extended warranty.
Firstly, it is not necessary to purchase the warranty the same day you buy the car. You can take your time and shop around to see what is best. Moreover, the less reliable the brand of the car, the more expensive the warranty will be.
However, it is always possible to negotiate the price of an extended warranty. Don’t be shy to shop around because the car dealership is not the only place to buy a warranty. You can always talk to different warranty companies to get what you want.
Finally, we suggest that you wait until the end of the manufacturer’s warranty to activate the extended warranty depending on what is included in the contract. If you need extra protection over the basic one then go for it. However, if you just need to add more years to the basic warranty, then wait until it is over.
How can CarCostCanada help you?
CarCostCanada is always available to answer questions throughout our live chat on our website. With our many years of experience in the business, we are going to help you the best way we can with the process of buying a new car and extended warranty.
Moreover, you can always take a look at our latest reviews and answers to questions often asked. We also offer free price reports to help you negotiate your new dream car and put you in contact with the best dealership.