If you’re getting to purchase a car, which could end up being one of the biggest purchases of your life, your new car will come with a warranty and you me be sold on additional warranties depending on the manufacturer. Extended warranties are always pushed at the dealership level to cover issues that happen outside of the warranty. My initial gut instinct is to avoid any upsell like that, but there may be some benefits to extended warranties. If you are outside your warranty you will want to find a dependable car repair mechanic to provide the repair services needed.
New cars typically come with a variety of warranties, knowing which ones are good for you will be important. The most popular option out there is the bumper to bumper warranties that come from the factory. These warranties are covered by the actual factory and not the dealership that sold you the car. These warranties usually run about 3 years and can extend beyond 35 thousand miles. These warranties cover replacement parts for anything outside of the wear and tear items like brakes and tires that wear out regularly. Oil changes and filters are also not included in that.
Increased warranties have improved car sales for many manufacturers. It makes it easier for a buyer to make a purchasing decision with a warranty they will cover any major issues they have with their vehicle. Car dealerships that have good reputations have benefited from being able to offer shorter term warranties because of this.
So should you purchase those extended warranties? The answer is easy, if you have the money and want to guarantee the replacement of parts outside the manufacturer's warranty. If you don’t have the money or don’t believe in the value of the warranty then you should definitely pass on it.
Basic coverage is usually enough, but you never know when something out of the ordinary is going to come out the blue. In my opinion if it’s an affordable upgrade then you do it, especially if it can be bundled in to the cost of the vehicle.
Here are some of the warranty options.
- Basic Warranty: The bumper to bumper warranty covers factory defects and factory installed parts. Any wear and tear items like tires and brakes are not included.
- Powertrain Warranty: Powertrain warranties cover engine wear, transmission repair, axle parts, and in general last longer than the regular warranties. These are also commonly referred to as a drivetrain warranty.
- Corrosion Warranty: These warranties are great for coastal communities and cover rust and corrosion that happens in floorboards, doors, fender wells, and other parts of the car.
- Roadside Assistance: This is good for the non-mechanical types. Having a warranty that covers the vehicle when you are stranded is nice. Not every manufacturer offers it, but something like Triple A is great route to take if you want that. It’s best to check with dealers for specifics, but here is a list of seven top auto companies that offer among the best car warranties, despite the fact that many are rated safe cars by independent research firms.