Top 6 Reasons Why You Should Buy An Extended Warranty For Your Next Vehicle
For decades, automotive extended warranties have gotten a bad rap. There always seems to be two distinct camps...one that says you should buy a warranty for a car regardless of whether it’s new or used and the other that warns that you’ll never use it and it’s a waste of money.
One thing is for sure...the naysayers may never have had to experience the pain of a huge repair bill right before they need to make their next car payment. Or having their car breakdown when they are 400 kilometers from home with a car full of impatient kids.
Extended warranty protection is there for life’s unexpected mechanical breakdowns...the expensive repairs that likely fall outside of the standard warranty that comes with the car from the factory. We’ve all had them. It’s inevitable.
And as cars and trucks have become more intricate and complicated to repair, extended warranties are more important than ever.
Here are the 6 top reasons why you should add an extended warranty policy to your new or used vehicle (and some may surprise you)...
- One Repair, Pays for Itself - Don’t be put off by the cost of an extended warranty. When you compare that one-time cost to the cost of replacing a $900 air conditioning compressor in the middle of summer, you’ll see it pays for itself after one pricey repair.
- People are quick to throw around the term ‘ROI’ or return on investment. The ROI for extended warranties is pretty high when you look at the cost of repairs and replacement parts.
- Inflation ‘Insurance’ - Parts and labor only seem to get more expensive. An extended warranty locks in protection against the rising cost of replacement parts. It won’t matter how expensive repairs get...you’re insulated from that cost.
- Payment Protection - Most new and used car buyers will have a payment for as many as 7 or 8 years. Who wants to pay for expensive repairs WHILE you are making your monthly payment? Extended warranties alleviate that financial worry. You can also choose a warranty length that covers the entire loan term for extra peace of mind.
- Higher Resale Value - If your extended warranty policy is transferable, it can add value to your trade-in or private sale. Even a few years left benefits the new owner and you can factor that into the selling price of the car.
- Covers More Than the Manufacturer Warranty - Whether it’s the 3 yr/36k bumper-to-bumper warranty or the powertrain coverage offered by the manufacturer, it still may not cover enough. Extended warranties now offer deeper component protections throughout the vehicle but also offer extras like 24/7 roadside service and trip interruption reimbursement.
- Easy Financing - Your extended warranty can be wrapped up in your payment and all financial institutions allow for this in loan calculations. You don’t have to come out of pocket (unless you really want to) to add the protection and it usually doesn’t add too much to the payment overall.
There is a reason why dealerships, like us here at Ernie Dean Chevrolet, place such a high emphasis on selling extended warranty protection...we know how much repairs cost. We understand that car prices are going up and monthly payments are at historic highs. We hear stories from past customers about how their extended warranties helped them get back on the road while on holiday or helped fix their car when they were short on funds.
We get it.
So when you talk with the F&I staff or salesperson either at your local dealership or here at Ernie Dean Chevy about the optional extended warranty packages they offer, think about the cost of NOT having it before saying ‘No’. Ask plenty of questions, look at the available terms, be informed. You’ll be glad you did.