Imagine you are at a car dealership and just going to exchange a good amount of money and finally doing your signs for a new vehicle. After the heavy lifting, the entire job seems to be done, right? But no it is actually not. You still need to make a decision from where you are going to get an extended warranty for your car.
Continental extended warranty is an option for you that offers you comprehensive coverage and has five plans to make you choose according to your needs.
This is the article intended to make you understand the differences between the options of warranties and which one is better for you. And here is the disclaimer, the “extended warranty” is not actually a warranty. It is simply an insurance policy for your vehicle as a safeguard for unforeseen and expensive repairs. It covers you for the repairs that have an agreed upon period of time and miles.
Types of Extended Warranties:
There are two primary types of extended warranties. One is offered by the actual car manufacturer also called as OEMs (Original Equipment Manufacturers) and the other is provided in the aftermarket by third-party vendors.
1. Manufacturer Warranty:
The OEM warranty is available in two varieties for a new vehicle : powertrain and bumper-to-bumper warranty.
A powertrain warranty is to cover the engine and transmission for the defects in the workmanship that can lead to wrong operation of your car’s engine or transmission.
And a bumper-to-bumper that is also known as limited warranty covers most of the other items in the vehicle from powertrain warranty. Alongside the major components it covers, it also include the things like power seats, navigation system, onboard computers and such other electronic elements.
An extended warranty from the original manufacturer most of the time mentions the offered new vehicle, increasing the length of the coverage and allotted mileage. Some of the manufacturers even give additional benefits like roadside assistance.
When you are looking for a warranty that could work best for you then you might get offered to choose the one with deductible or not. This is quite similar to your auto insurance. Note one thing in mind that the higher you get deductible the lower the policy charges you. The best part is that the original manufacturer warranty deductible is quite minimal and does not get more than $200.
2. Third-Party Warranty:
Most of the third party or the aftermarket warranties have similar coverages to offer as OEM warranties. But there are times when these third-party warranties have exclusions, rules and requirements that OEM don’t. The downsides of these third-party warranties are strict limitations for the location to get your vehicle fixed and big deductibles. Oftentimes, you will not even get a guarantee for the usage of your original parts.
Another of the crucial differences is the way coverage gets administered. A third-party warranty requires you to pay for the repair from your pocket and then file a claim for reimbursement later. For sure this is not a quick thing to happen and can take months to recoup what you paid for your recovery. Make sure to know the payment expectations before final selection if your consideration is third-party warranty.
Apart from these downsides of the third-party warranty, its best part is that it cost quite less than the warranty offered by the original manufacturer. There are cases when you only have an option to go for a third-party warranty for example getting a Ford at a Hyundai dealership can never make you have a Ford OEM warranty because the dealer is not even original.
If you are willing to choose a third-party warranty then must take proper time to read the whole coverage details and payment plans before final sign for agreement.
Tips for Buying Extended Warranties:
Here are some tips that can help you while buying extended warranty for your new car.
● You Don’t Need Warranty The Same Day You Got Car:
Yes, you should never hurry in getting the warranty and you don’t even need it the same day you buy your car. You should sleep on your idea and then decide afterwards. However, if you are getting a loan to finance your vehicle purchase then buying a warranty the same day enables you to add the warranty costs to the loans. Still the choice is yours.
● Get Recommended Service on Schedule:
It is vital for you to get the services recommended on a set schedule. There are some warranty companies that refuse to cover up for the repair if the car owner is unable to prove that the car got services following the recommended guidelines.
● No Extended Warranty is Needed for Auto Loan:
The Federal Trade Commission mentioned on a general note that it is not necessary to get extended warranty to qualify for an auto loan. You need to contact the lender if the dealer tells you to get a service contract for financing.
● A Buyer’s Guide Fixed:
If you are getting a used car from a certain dealership then your vehicle will have a buyer’s guide fixed to your car’s window. This will explain the type of warranty you have with your car purchase.
Getting yourself an extended car warranty is not something that always turns right for every car buyer. However, there are millions of people who are happy with their decisions. If you are also thinking of getting a warranty for your car then you must take some time to read and understand the fine print on the contract. This will make sure that the warranty is for things you wanted and do not have any red signals that you never want to deal with.