The Benefits Of Auto Warranties And How They Can Save You Money In The Long Run
by Arnab Dey Automotive 08 October 2022
An auto warranty is a service contract that provides coverage for repairs to your vehicle. Most warranties cover major components such as the engine, transmission, and drive axle, but they can also cover items like the air conditioning system, power windows, and seats.
Auto warranties can be purchased from the dealership when you buy your car or from a third-party provider. The primary benefit of auto warranty services is that they can save you money in the long run. When something goes wrong with your car, the cost of repairs can easily add up.
A warranty will help to offset some of those costs. Additionally, many dealerships offer free roadside assistance as part of their warranties. This can come in handy if your car breaks down while you’re on vacation or out of town.
Auto Warranties: The Benefits You’ll Get
Auto warranties provide many benefits and can save you money. Keep reading to learn more about the benefits of auto warranties and how they can save you money.
What Are The Types Of Auto Warranties Available?
When you are looking for a new or used car, it is important to understand the different types of warranties available and the car warranty period. An auto warranty is a guarantee from the car manufacturer that certain repairs will be covered in the event that something goes wrong with your vehicle.
There are three main types of auto warranties: comprehensive, powertrain, and bumper-to-bumper.
1. A Bumper-To-Bumper Warranty
It covers most of the components of your car, including the engine, vehicle transmission, and drive system. This usually comes with the purchase of a new car, and it typically expires after three years or 36,000 miles.
2. A Powertrain Warranty
This type of auto warranty covers only the engine and transmission. You typically also have powertrain coverage with a new car which usually lasts for five years or 60,000 miles.
3. A Comprehensive Warranty
A comprehensive warranty includes both bumper-to-bumper coverage and powertrain coverage. If you purchase a used car, you might need to purchase an extended warranty for the car. An extended car warranty is an optional insurance policy that covers certain repairs and maintenance on a car for a longer period of time than the manufacturer’s warranty.
Car dealerships and other automotive organizations usually sell these warranties. So make sure you bargain the extended car warranty cost. An extended car warranty can provide coverage for a wide range of mechanical and electrical issues that may occur on a car, including problems with the engine, transmission, brakes, and more.
It can also help cover the cost of replacing parts that wear out or break down over time.
How Can An Auto Warranty Save You Money In The Long Run?
When you buy a new car, you will get the benefits of the manufacturer’s warranty. In addition, the dealer might also offer you an extended warranty, also known as a service contract. An auto warranty can save you money in the long run by protecting you from unexpected car repairs.
1. Warranty For New Cars
Many people mistakenly believe that auto warranties are only necessary for expensive luxury cars. However, even if your vehicle is relatively new and has low mileage, it still may need repairs eventually. If something goes wrong and the manufacturer’s warranty does not cover it, you could be looking at a costly bill.
An auto warranty can provide coverage for numerous mechanical failures that you might encounter. Most service contracts cover parts and labor costs, and some even include towing and rental car reimbursement.
By purchasing an auto warranty when you buy your car, you can potentially save thousands of dollars in repair costs over the life of your vehicle.
2. Warranty For Old Cars
If you have an older car or a vehicle with high mileage, it might be particularly worth investing in an auto warranty. Many auto warranties offer coverage for vehicles with up to 100,000 miles or ten years old. And if your car does experience a major failure, the cost of repairing it will likely be much higher than the price of a standard warranty policy.
In short, auto warranties can save you money in the long run by protecting you from unexpected repairs expenses. If you’re thinking about buying a new or used car, be sure to ask about car warranty checks and extended warranties available from the dealer.
How Do You Know If An Auto Warranty Is Right For You?
Before you decide whether or not to purchase a warranty, you need to consider how much your car is worth and how much you would be willing to pay for repairs if something goes wrong.
If your car is worth less than the cost of the warranty, it’s not worth purchasing one. And if you would have to pay more for repairs than the warranty would cover, it might not be worth buying either.
However, if your car is worth a lot and you don’t want to risk being out $2,000 or $3,000 if something goes wrong, then a warranty might be a good investment for you. Warranties can also save you money in the long run by preventing smaller problems from turning into bigger ones.
Wrapping It Up!
Ultimately, whether or not an auto warranty is right for you depends on your individual circumstances. You should weigh the costs and benefits before making a decision.
Overall, the benefits of auto warranties are clear. They can save you money in the long run and provide peace of mind.