Primary Reasons You Need An Extended Warranty On Your Vehicle

When shopping around for a used vehicle, it’s essential to look for high-tech features, modern safety elements, and pre-inspection.

On the other hand, if you are looking to buy a brand new car from an automaker or manufacturer, the good news is that your vehicle will come with a warranty and the bad news is that the contract has an expiry date. On average, the initial car warranty period is set at between three to four years.

An extended warranty is a policy you can get once your initial contract expires, which is meant to safeguard your car against maintenance repairs, mechanical breakdowns, and other unforeseen costs.

Here are five primary reasons you need an extended warranty on your vehicle:

Value Preservation

Typically the value of your car will depreciate rather than appreciate, meaning that as soon as you drive out of the dealership, the value of your vehicle is less than when you purchased it. If you have had your car for more than three years, the value of your vehicle will be significantly decreased due to wear and tear.

Having a warranty backed by an automaker or manufacturer, such as the BMW extended warranty, will ensure that your car is regularly serviced through conducting maintenance checkups. During these checkups, qualified technicians will evaluate damages or the potential breakdown of crucial parts of your vehicle, such as the engine and other electrical and mechanical components.

The warranty will then kick in and pay for the repair of these components, which will, in turn, preserve the value of your car.

Costs Of Repairs

Paying out-of-pocket for repairs or replacement of car components is generally more expensive than paying a fixed monthly fee for an extended car warranty. These costs are higher because, without a warranty, you will have to contact a private mechanic who will charge you based on exorbitant repair rates. Furthermore, major repairs are exceptionally costly in general.

Another thing that elevates the out-of-pocket car repair and maintenance costs is that you are likely only to take your car for a checkup when you experience a mechanical breakdown.

Cost Of Ownership

Owning a car is not a cheap investment; some argue if it is an investment at all. Therefore it is essential to consider the overall cost of ownership when purchasing a car. On top of paying your monthly car installment, you also have to pay for other expenses associated with having a vehicle, such as insurance, fuel, and unforeseen repair or maintenance costs.

An extended warranty will cover your car against electrical and mechanical breakdowns that you may not have considered in your budget.

Added Benefits

Automakers and some third-party service providers can offer extended warranties that can provide you with bonus features. Such as roadside assistance if you need towing, vehicle tracking should you report your car as stolen, tire cover for punctures, and other entertainment features like movie ticket vouchers or store discounts.

An extended vehicle warranty is similar to insurance because it gives you peace of mind. As a car owner, you know that there are costs that you will incur, and as your car gets older, these costs will only escalate.

Featured image: Unsplash (Justus Menke).