Top 5 Things to Look for in Extended Auto Warranty

While purchasing a vehicle, the extended auto warranty is mostly not on the priority list of consumers. Most people overlook it focusing on other aspects of the vehicle such as mileage, durability and spare parts availability. Extended warranty kicks in when manufacturer’s warranty expires. The components and tenants of extended warranty vary from dealership to dealership. For an average person who hasn’t procured a vehicle before, the share details of extended auto warranty can be complicated and mind boggling. The objective of this article is to elucidate the key components that a comprehensive and all-encompassing extended warranty should have.


1)    Extended Warranty is Optional and can be Expensive

First off, you must know, this pledge is optional. Customer is not obligated to opt for it. Extended warranties are however profitable for dealerships, so it’s not uncommon for them to insist customers to opt for it. Knowing this in advance can save you from incurring additional cost.

2)    Who is Behind the Warranty?

If opting for extended contract, it’s highly advisable to do a background check before signing the dotted line. Find out who stands behind the warranty. As a rule of thumb, this service contract offered by the car maker is entertained and accepted throughout the country and at every dealership. Extended assurance backed by third party or the dealership itself tends to lack the coverage offered by aforementioned.

3)    How long do you plan to retain the vehicle?

Buying extended service contract is like a preemptive move. You might need it in the long run or you might never need it at all. This depends on how long do you plan on retaining the vehicle? If you are a sort that likes to opt of newer models and discard the old ones within a year or three then it makes no sense to invest in extended assurance.

4)    What is Actually on Offer in the Warranty

The old saying “the devil is in the details” is highly appropriate when it comes to appraising what the extended contract covers. What’s covered what not is a loophole which is exploited. General wear and tear, coverage for most used parts like clutch, brakes, replacement parts and most importantly labor cost tend to be excluded in warranties. Make sure your warranty provider isn’t trying to “pull a fast one” on you by exploiting these.

5)    Be Clear on the Method of Availing the Warranty

This fits in with the 4th point. Be very clear on how you will actually avail the warranty when the time comes. Will you first need to notify the company offering the warranty before taking your vehicle for repairs? Do you have to pay yourself for the repairs and present the bill to the warranty provider for reimbursement? For more thorough and exquisite details on extended warranty click here.

With a burning passion for all things automotive, I've been involved in writing on cars for the past 7 years on a selection of different car blogs. If there's something intriguing going on in the car world, I'm interested!