Most new cars come with a warranty, and there are almost as many different types of warranty as there are cars. Some offer what they call “bumper to bumper” protection of your car’s engine. Simply put, it covers just about everything that could break or otherwise go wrong inside the car. But what happens when the warranty runs out?
When Should You Consider an Extended Warranty?
The term of a new car warranty varies with the auto manufacturer. It is generally three years or 36,000 miles, whichever comes first, or five years and 50,000 miles, again, whichever comes first. Some offer an additional length of coverage of the drive train that connects the transmission to the driving axles. You are required to maintain your car according to the owner’s manual in order to retain the warranty. Once that warranty expires, you become financially responsible for all repairs, and that can be quite pricey. That is the time to consider an extended warranty.
Typical Cost of Repairs
In a recent study by the American Automobile Association (AAA), it found the average cost of a car repair is about $500-600. If car repairs aren’t made quickly, they can get worse and wind up costing a lot more. One top national auto repair chain offers one important piece of advice: when the “check engine light” comes on, check the engine! There are literally hundreds of reasons the light comes on, some very minor, but it is worth the time and effort to have it checked because if there is a problem, dealing with it immediately can save time and money in the long run. It can be tough to pay for car repairs sometimes. If you have to replace a transmission, that could be as much as $4,000. Financial advisors recommend putting aside $50 every month to cover car expenses, but not everyone can do that every month.
Types of Extended Warranty
For someone who plans to keep their car for a long time, an extended warranty can be a great investment. It can also serve as a safeguard against purchasing a new car if you are not financially ready. Sadly, over the years, unscrupulous companies have made a lot of people suspicious, but research will show you which companies are on the up-and-up and which are not. Your insurance carrier can make recommendations and you can check sources like the BBB. Not all warranties offer the same coverage, so make sure you understand exactly what you are getting. Also, make sure you have the freedom to choose where to have the work done. It can be very inconvenient to be limited to repair options. You want to be able to go where you feel comfortable. You also want a warranty designed specifically for the car you drive, like the Nissan extended warranty plan. Created exclusively to suit your car, it has taken into account the most common long-term needs of the car. The warranty is a great hedge against unexpected assaults on your budget.
Considering warranty depends on what you need and your plans for the future. You may want it but you may not actually need it. So, do you really need an extended warranty? should you really consider it? No matter what you decide always make sure to think carefully and assess all your choices based on what you need.