What are the Advantages and Disadvantages of an Extended Warranty

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Every car purchased in a store comes with a certain warranty period, during which the authorized services cover the repair costs, and may even offer a replacement of the vehicle if the defect is caused by a factory error or bad parts used in production. In this way, the buyer is spared the additional costs associated with repairing a new car.

But what happens if you buy a used car or after the warranty that the manufacturer gives you expires. In such a case, many opt for an extended warranty, which can save the owner money on several occasions, especially in the case of small and medium defects, and in some cases for more serious repairs.

Although an extended warranty is not cheap to buy, many repairs exceed that price, which at first means cost-effectiveness. Think carefully about such steps and make an appropriate assessment, so if you think you need it, you can follow this link and select what you want to include and cover. The best thing about these warranties is that you can adjust them exactly to what you think you need and get a price accordingly.

So, if you are buying a used car or you want to have some security with what you already have, you can consider such a document. In general, it can save you money on repairs, extending the life of your vehicle, or allowing you to sell it for a better than average price.

However, it does come with some tricky terms, such as limits and exceptions that this document does not cover. Also, you may never need such repairs, making the document automatically unprofitable.

Therefore, in the following content, we will review in detail all the advantages and disadvantages arising from the extended warranty for your vehicle.

Advantages

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  1. You save a nice amount of money for repairs

We all know that repairs can be so expensive, and we really need some options that will help us save some money. With this document, you can have those things covered, by your choice. When you buy it, you only need to select the critical and costly parts and make sure you include them all, especially if you are aware of the overall condition of the vehicle.

By doing that, you are saving money, and have your car always nicely maintained for an affordable expense.

  1. You can keep your car longer

When the malfunctions first appear, many people intend to repair them and sell the car, so they won’t spend a lot of money repairing it. It can be a good idea, but the extended warranty can help you cover those expenses and keep your favorite four-wheel friend as long as you want.

You only need to estimate one thing – would the monthly payment still be lower than the repairs? If you answer this positively, the warranty is the solution. But, if it’s a one-time intervention, you can give it a second thought and change your mind.

  1. You can make your own customized warranty

If you know the weaknesses of your vehicle, then you know what to do. Make sure you have selected all the options that you consider important for your car. Original warranties are not as flexible. You can also change the terms, i.e. add items, or subtract, if you think such a thing is necessary. Just keep in mind that the price is not fixed, and it depends on the terms included in the contract.

Disadvantages

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  1. It’s an expense anyway

It’s an addition to your regular expenses, and you really need to know if you need it or not. Keep in mind that it’s not a trend, because it’s considered a necessity, especially for the older cars. But, if you don’t think you can afford to pay for it at once, or every month, or so, then think twice about your decision. If your vehicle is in good general condition, the extended warranty may not be crucial to have at this point.

  1. You can’t choose to cover everything

There are many limitations, and some repairs can’t be included in the contract. That means, for example, if the paint is scratched, but the agencies don’t offer coverage for that service, you will have to pay the price for a complete repaint because we all know the struggle. Even when the colors completely match, there will be shade differences, so you need to do the math.

  1. Not all mechanics are authorized to make repairs

One of the things that are often forgotten is that the companies that sell these warranties usually have a limited list of approved service and repair providers. This means that there is another limitation that you will probably not like. However, these are professionals, but it is quite normal not to trust them. In the end, the car owner himself makes those decisions at his own risk, and imposing a mechanic or service technician is something that few people like. In that context, the warranty may not apply to your preferred repairer if it is not listed.

As you can see, there are so many things to consider and anticipate that clients often change their minds and even begin to suspect that they do not need such a document.

Conclusion

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Both pros and cons should be considered when making such a decision. We tried to balance them so that you can decide for yourself what to do next.

As we have already said, it can easily happen that you pay a lot of money for services that you will never use or that you do not cover damages that happen to you often. Therefore, it can not be said that extended warranties are completely bad or completely good, because that assessment depends only on you, as a user of the services.

However, we would say that the benefits outweigh the disadvantages – if you were interested in our honest opinion.

So, be smart, estimate the potential expenses, and make your decision the best you can