3 Reasons Why An Extended Car Warranty Isn't Always a Wise Option

28 January 2015
 Categories: Automotive, Blog

When buying a car, most people go with brand new units for their manufacturer warranties. In fact, some excessively cautious people who don't completely feel fortressed by the original cover go in for additional or extended warranties that supersede manufacturer-bestowed warranty covers. While the move may seem in the best interest of the vehicle and its owner, the following are a few reasons why extended warranties are possibly an unnecessary outstretch.

Longer Manufacturer Warranty

While two to three years or 50,000 km to 100,000 km are the average new car manufacturer warranty limits, quite a few manufacturers are now upping the ante and stretching the ceiling higher. In other words, companies are now extending beyond traditional warranty terms and figures, to increase sales and customer confidence in their products.

Likely Vehicle Usage Duration

Extended warranties don't really bring much to the table when you aren't foreseeing vehicle usage beyond OEM warranty period. For instance, if you own an automobile that you plan to drive for not more than five years, buying an additional warranty just won't make any sense, since the manufacturer equips its automobiles with a much higher warranty cover, as mentioned earlier.  

Varying Obligations

Extended warranties aren't sponsored by the manufacturer; these are pledged by insurance firms. As a result, the scenarios under which the car owner can claim insurance cover will vary with the car model, its age, and several other external factors. For instance, some warranties cover only mechanical component failures, or just parts replacement. Labour costs, electrical failures, or other problems may not be sheathed. The extent of cover may also not be comprehensive with the cost reimbursement and come with various caveats. 

Moreover, the contract may also specify that the warranty cover won't be transferred upon selling the car, making it difficult to find resale buyers who are in agreement with the deeds.

If you are a roadie or someone who loves being on the move constantly and are not keen on aftermarket warranty covers, buy automobiles with the maximum or unlimited kilometre warranty. Several leading brands are offering models with such packages bundled in, so you wouldn't find it exasperating to find a model of your preference.

Extended warranties are meant for individuals who develop an emotional bond with their automobiles and who won't let go the vehicle even if it's too old or not worth repairing any further. Learn more about warranties by talking to local services such as Gaspower Automotive Services.