When you buy a new vehicle, be it second hand or brand new, it is common to be offered an extended warranty for additional protection. In terms of the extended warranty cost, this will vary depending on what kind of vehicle you are buying and how long that extended warranty covers you for. The initial reaction from most people when offered this additional cover is to say no, especially given that they are already spending money on the vehicle itself. Whilst this is completely understandable the reality is that an extended warranty is something which you should be looking seriously into, because it can provide you with a range of benefits.
Let’s take a look then at why saying yes to this cover, may actually prove to be a smart move for you.
Table of Contents
Peace of Mind
We often underestimate the value of peace of mind, and this is exactly what you will get when you have an extended warranty. Most manufacturers will offer you a guarantee of its parts for a certain time frame, but beyond that you will have to foot the bill for anything which goes wrong. For most car insurance policies these don’t protect against parts breaking down, as they re usually aimed at accidental damage or theft. Once that manufacturer’s warranty is over however, you can count on peace of mind of still having cover for an extra one or two years.
Selling On
A common reason why people say no to this additional cover is that they are unsure how long they will have the vehicle, and so they don’t want to waste their money on coverage which they eventually won’t require. What many aren’t of however is that this warranty can actually be signed over to somebody else. This could both increase the value of your vehicle should you sell it, and it will also make the vehicle significantly more attractive to a potential buyer. Even if you only have short term plans for the vehicle, the warranty still makes sense.
Inevitable Issues
An extended warranty is ultimately like getting insurance on your vehicle. What we mean by this is that should something happen to your vehicle whilst you have cover, you are going to be very thankful that you made the move to protect yourself. If however nothing happens, then you may feel frustrated that you paid for the cover in the first instance. The reality however is that breakdowns do occur, and it is a far smarter move for you to have cover, before anything like that should happen.
Financial Planning
Another benefit to bear in mind is that if you have the extended warranty in place, then you won’t have to worry about shelling out money should one or more of the car’s parts break down. This can greatly help with financial planning and you can plan those finances without having to factor in emergency funds for such an event.
The original cost may seem a lot, but in the end you will be pleased with the choice to get extended coverage on your vehicle when it is offered.
