Your vehicle is your second largest investment next to your home. Everyone has fire insurance on their home, and yet the chances of using it are far less (thank goodness) than a warranty for your vehicle. It’s vital to prepare for any emergency.
Extended warranty on your car is important because there are many expensive replaceable items on your vehicle. The average vehicle has about 30,000 components if you count every nut and bolt, but not all of these will be covered. Also, extended warranty will typically not cover wearable items such as brake components, air filters and fluids because they are designed to wear as you use the vehicle and are considered regular vehicle maintenance. While there are different plans you can choose, the majority will cover powertrain items like engine, transmission and drive axles, to name a few.
There are different types of extended warranty, one is from the manufacturer of your vehicle that you can purchase from your dealership and the other is warranty from a third party provider. I am not as familiar with the third party options. I chose to buy my extended warranty from my dealership at the time of my purchase, although you can buy that at any time as long as you are under the manufacturers’ original warranty. There is a fee the longer you wait, so it’s best to buy straight away if you want to extend your warranty.
If you choose to sell the vehicle prior to the extended warranty running out, you can in most cases transfer the balance of that extended warranty to a new owner. So essentially you can sell that insurance with the vehicle and regain back some of your money while still having that full protection.
Today’s vehicles are truly a technological marvel. With the amount of sensors, safety systems and even the media options, the costs of repairs have risen dramatically. Most basic manufacturer warranties will include a longer powertrain, but if you plan to keep the vehicle beyond three years it’s so important to buy extended warranty, particularly just for sensors such as oxygen sensors, CO2 sensors, the screens that runs your navigation, etc.
Lastly, an extended warranty from your dealership will ensure you get parts back on your vehicle from the original equipment manufacturer and that your vehicle is worked on at the dealership by trained professionals who are skilled on your brand and model.
Important note, doing the regular maintenance on your vehicle outlined by the manufacturer will help keep both the warranty that came with the vehicle and the extended warranty valid. Think about how long you plan to keep the vehicle you buy and decide which extended warranty is right for you.
Until next time, drive safe.
The Car Lady
Christine Mitchell, owner and principal of The Car Lady, spent many years in the automotive industry as a technician, service advisor and salesperson. In 2001, she put her knowledge and experience together to start The Car Lady brand. She has driven hundreds of thousands of kilometres to help dealerships across Canada build customer relationships that increase both customer retention and customer satisfaction.
