Another reason companies use the extended car warranty waiting period is to YOUR benefit. You get 30 full days (sometimes more depending on the policy selected) to ensure you have adequate coverage. If you decide you're not satisfied or not interested, we'll cancel and refund your money. Vehicle eligibility for extended warranties varies by provider.
Manufacturers generally require you to purchase an extended warranty on the day the vehicle is purchased or before the factory warranty expires. Third-party contracts can be purchased for new or used vehicles at any time. The coverage of some third-party providers extends up to 250,000 miles. To qualify for a Toco warranty plan, cars must be less than 20 years old and less than 175,000 miles.
Eligibility may also vary by plan. The start date of warranty coverage is the date you purchase the vehicle, even if the vehicle was manufactured several months before the date of purchase. If you are the second owner of the car and the warranty is transferable, the start date is the date on which the original owner purchased the car. To qualify for a CarShield plan, cars must meet certain eligibility requirements, although the company does not disclose exact requirements.
But for most drivers, extended car warranties are not used, so the potential benefits are not enough to justify the initial cost. If your car isn't the most reliable, you may be more comfortable buying an extended warranty than without it. While extended warranty pricing may seem quite complicated given the number of factors, there are some advantages to how things work. The best way to find the right extended warranty is to think about your needs and research options ahead of time.
Extended third-party warranties don't have as much room to negotiate, but many providers make it easy to customize the plan to fit your particular budget. With an extended third-party warranty, you can usually take your vehicle to any repair shop, offering more flexibility in the event of a breakdown. Extended warranty providers are often the first point of contact when you have an issue that you want to fix under warranty. It's not uncommon for extended factory warranties to require you to follow a specific maintenance schedule to maintain your coverage.
Instead of having to spend money to send an expensive inspector to make sure your car is in working condition, there is the waiting period. Most people who purchase an extended warranty save less on repairs than they pay for the contract, according to a Consumer Reports survey. An extended car warranty is a service contract that drivers can purchase to pay for repairs to a vehicle's main systems, including the transmission and engine. An independent powertrain warranty covers the mechanical parts that move the car and typically lasts several years, or several years of driving, longer than the bumper to bumper warranty.
While there's usually only one factory warranty you get with a new car, your options will grow dramatically if you're looking for an extended warranty. Therefore, they do not cover damage from accidents or when the car is used in a way that the manufacturer did not intend it to be used. A car manufacturer, such as Ford or Chevrolet, sells an extended manufacturer's warranty and can be purchased from the car dealer.