One of the more common questions The Auto Consultants receive is whether or not one should buy the extended warranty on a new vehicle. Let us elaborate!
Most modern cars are reliable but with every new generation comes more technology being packed in. While some features are tried and tested, many are new to the market.
Let's discuss the different types of extended warranties.
Powertrain Warranty:
Powertrain warranties are designed to cover the major mechanical components of your vehicle. These components have been around for years with little change. As a result we can say for the most part, vehicle powertrains are very reliable. Mitsubishi offers a 10 year powertrain warranty and Mazda offers an unlimited mileage warranties on these components. We would only recommend purchasing a powertrain warranty if the car you are buying has some newer, less reliable technology under the hood. Over the last few years we have seen some basic vehicles add new advanced technology to the engines. Features like cylinder deactivation, turbo charging, direct injection and continuous variable transmissions are all common on entry level vehicles. We recommend adding an additional powertrain warranty if the car you are considering has all the above mentioned features. Also, an extended warranty may come with a deductible and you should ask the dealership what that amount would be per repair.
Limited Extended Warranty
These warranties may be present as bumper to bumper coverage or an extension of the vehicle's original factory warranty.This warranties usually do not cover as many components as the original factory warranty, but the coverage will be more extensive than a pure powertrain warranty. These warranties will cover the electrical components and technology in the car, which may break over time. We strongly recommended these warranties to protect your car and avoid unexpected repair bills. These warranties may also include roadside assistance. As with a powertrain warranty, it's important to know if there is a deductible when you bring in the vehicle for repairs.
Here are some things to consider before buying an extended warranty:
Is the car pre-owned? If yes we would strongly consider purchasing an extended warranty.
Is the car loaded with new technology? If you are buying a car with adaptive cruise control or air suspension and plan to own it long term, we recommend the extended warranty.
Is this a basic vehicle? If there isn’t a turbo or other modern tech, then we would not recommend adding the warranty.
Do you plan on owning the car long term? If yes, is it a reliable brand? If not, then an extended warranty could be a great way to protect the vehicle and yourself from unexpected expenses. The extended warranty could even add value if you are looking to sell the car after a shorter period.
Are you considering the purchase of a new or used car and are uncertain about the extended warranty? Contact The Auto Consultant and we can advise you.
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