It’s hard to find reasons to avoid buying an extended car warranty. It’s practical and saves you a great deal of trouble in the long run. However, have you ever tried to reason out whether your vehicle actually requires an extended warranty?
The answer to that question would depend on your outlook on risk management and how valuable the item in question is. Through this article, you can expect to get the right perspective on what Extended Car Warranty Insurance actually is and decide on what kind of warranty would suit you the best.
What is an Extended Warranty
A Car Extended Warranty is basically an investment that keeps you safe from unexpected damages and complications. It can be availed for both new and old vehicles. From a strictly legal standpoint, a warranty is a promise given by the manufacturer of a product and cannot be provided by any other third party. When a third party provides the same assurance, it is known as a Vehicle Service Contract. Some of these third party companies also provide services like Bad Credit Car Loans Sydney and offer the services of Business Finance Brokers.
A VSC or vehicle service contract can be confusing and does not necessarily come in a clear language. You may not be able to actually understand what the documentation says. Through this article, we strive to help you get through the tumbling legalities and provide clarity on how this investment can be used to your advantage. Generally, you could actually stand to get a better deal by signing up for a VSC from a third party rather than getting one directly from the dealer.
You can avail of different types of insurance schemes, ranging from the cheaper “big ticket items” all the way up to the highly expensive yet comprehensive “bumper to bumper” scheme.
Here are some pointers about extended car warranty that will help you make the right decision.
- Avoid buying any kind of extended warranty coverage at the dealership. You will end up paying way too much than you bargained for.
- Don’t let the price of the insurance determine your choice. Try to take other factors into perspective.
- Make sure you review the contract with extreme caution prior to making an investment in it. If you don’t understand the document completely, do not hesitate to run it through your legal consultant. You will not regret this decision.
- Try to get as many quotes as you can for the extended warranty so that you can have a clear perspective on the value of your warranty before you actually step into the dealership.
Adopting the Right Attitude to Risk
Perhaps a couple of decades ago, just about anybody would opt for extended warranty protection for their cars. Back then, cars were not very reliable, especially cars made in the US. Trips to the garage or dealer were fairly common back then. Today, it has become somewhat common to expect vehicles to perform flawlessly for thousands of kilometres. This has led people to believe that they could somehow manage to scrape through without having to buy an extended warranty plan.
Owing to the fact that you have an extremely reliable and well performing vehicle, there is a higher likelihood that the vehicle is going to be with you for an extended period of time and naturally, the longer the vehicle is being used by you, the more likely it is that you will have to pay for damages or maintenance.
Today with the amount of electronics and high end mechanical parts installed in your vehicle, repairs are not going to be cheap when they occur.
This is why an extended car warranty is a safe investment for your car, especially when it’s brand new.