Today, people are choosing to keep their cars for more extended periods than before. Since new vehicles come with a host of electronics and sophisticated technologies, you might be enticed to take an extended warranty. As you consider the option, look into these pros and cons of extended warranty.
Pro: They cover expensive repairs and pricey technology
Modern vehicles are quite complicated. With all the computerized components, electrical wiring and costly technology, the systems might fail when least expected. Diagnosing, isolating and repairing the issue can cost you a considerable amount of money. When you choose to buy an extended warranty, make sure it includes technology features and other vehicle systems.
Pro: Consumers can get custom-made warranties
The original warranty you get from the auto manufacturer depends on the mileage and time limits. Therefore, extended warranties come in to break these barriers, by offering flexible terms. One of the exceptional features is round the clock road assistance for new cars that are not covered by the manufacturer. However, you ought to be cautious by checking the exclusions before buying the warranty.
Con: They are expensive
Buying extended warranty can be likened to placing a bet. The bet is that your car might require repairs that cost more than what you paid for the warranty. The providers are also placing a bet that your repairs will cost less than the warranty. One of the parties wins the stake in the long run. All the same, bear in mind that the price can be negotiated.
Con: They do not cover all repairs
It is essential for consumers to read through the contract before purchasing. One should understand what the extended warranty covers and what it does not cover. Most providers will give their consumers an “exclusion list,” which entails the details of the warranty. Ensure you review the list before purchasing the contract.