That's why people sell them, because they earn a package with them in commissions, says a. Many extended car warranties are transferable for a small fee, which means you can provide the new owner with comprehensive vehicle protection. Individual buyers may see additional value in your vehicle due to their service contract, resulting in higher interest and a higher overall sales price. More comprehensive car warranties will cover more faults, such as some wear coverages, but will be more expensive.
You would have to weigh whether the extra cost is worth paying or whether it would be cheaper to pay for repairs yourself if a problem appears. Extended car warranties are a good idea for many drivers. If you want to budget for a small monthly fee instead of having to pay a large, unexpected repair bill when a breakdown occurs, an extended warranty can be a good investment. On the other hand, if you don't mind paying for repairs out of pocket, you may not need coverage.
Although Geico does not have an extended warranty plan, it does sell mechanical breakdown insurance, which is similar to an extended warranty and covers repairs to all mechanical parts of the vehicle. If you have a luxury vehicle like a Lexus or a BMW, an extended warranty could save you thousands of dollars on expensive parts. If your car isn't very reliable and you're not in a financial position to risk paying for repairs or replacing the car yourself, it might be worth paying a higher upfront cost for protection through an extended warranty. Extended warranties generally do not cover routine maintenance or damage caused by normal wear and tear.
Regardless of whether you have a new or used car, extended warranties are perfect if you need additional coverage or can't afford the cost of unexpected repairs. If you're buying a used car or if the manufacturer's warranty has expired, it's worth considering an extended car warranty. With almost every Extended Auto Warranty plan, you'll get extra benefits on top of the coverage you choose. Although commonly referred to as extended warranties, the correct term is extended service contracts.
If you don't have enough money to pay for unexpected car repairs yourself, you may want to consider purchasing an extended warranty or mechanical breakdown insurance coverage. The main reason people buy an extended service contract is to be protected against major repair bills, such as a new transmission or engine rebuild that can cost thousands of dollars, after the manufacturer's warranty ends. But like the financing they offer, dealers tend to increase the cost of extended warranties to make a profit. Not only does the value of the extended warranty depend on the provider, but it also depends on the research and due diligence you perform to choose the most reliable and personalized coverage.
When you buy a used car, you may be offered an extended warranty, but you may not be sure what it is or if you need it. Once the factory warranty expires, it can be difficult to pay the cost of repairs, replacement parts, and labor required without an extended warranty. Extended warranties can reduce financial stress, especially for those who own models from unreliable brands.