If you’ve saved up a bit of money over lockdown, you might finally be looking to treat yourself to a new car. However, it’s worth firstly taking time to understand additional features being offered to you in the process.
With reports from Autotrader proving that the prices of both new and used cars are rising rapidly, it’s easy to feel overwhelmed. In this guide we’ll focus on the importance of an extended warranty, and how opting for one when you purchase your car could benefit you in the long run.
What is an extended warranty?
Usually provided by manufacturers, ordinary warranties – or mechanical breakdown insurance – ensure you’re protected if you end up with a faulty product. Many only last a few years, with three years being the most common duration.
If you’re buying new, you won’t need to worry about the cost of any necessary repairs during its initial warranty period. However, if you’re keeping it for longer than that or buying a used car, you might want to consider taking out an extended warranty.
There are three main types of extended warranty: the manufacturer’s own extended warranty; a used car warranty supplied by a dealership or retailer, and an extended warranty available to purchase from independent providers.
How could an extended warranty help?
If you encounter any unexpected issues with your car, an extended warranty could provide financial peace of mind by taking care of the garage repair bill.
With a global computer chip shortage making new cars harder to come by, buying a used car might even be a more realistic option for you and your family – not to mention it’s likely to be more affordable, too.
Personalised levels of cover
An extended warranty should protect you against hefty repair prices from the unexpected failure of crucial components on your car. These could include the engine, electrical systems, gearbox, suspension, and steering – all of which must be operating smoothly to guarantee your safety.
You might also be covered for items that stop working due to general wear and tear – while some extended warranties might only cover cars up to a specified age and mileage, your car might still be valid for a few more years of cover.
With more expenses looming from the costs of winter driving and petrol prices hitting a record high, considering an extended warranty could save you more than a few pennies.
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