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    Home»Zero2Turbo»5 Extended Car Warranty Myths Busted
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    5 Extended Car Warranty Myths Busted

    By Zero2TurboJuly 7, 2021Updated:July 14, 2021No Comments
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    Myths about extended car warranties exist because most people don’t understand what they are or how they work. You may not even realize it, but it’s possible that you also have some existing misconceptions about these warranties, too.

    You Can Only Buy an Extended Warranty at Time of Purchase

    Car salespeople are all about the high-pressure pitch, and they’re going to tell you that you need to purchase a warranty right then and there. The truth is that dealers are the people in the middle who act more like brokers to get your coverage going.

    Dealers want to sell you the warranty because it means a higher commission on the backend. When it gets tacked on to a financing deal, charges increase, and the warranty cost also goes up. Instead, consider purchasing a warranty from the company for better rates.

    You can also choose to cancel an extended warranty after purchase if you contact the company. They will prorate you the remaining amount that is due and end your contract. You don’t have to be stuck with it once you buy it if you change your mind later.

    All Extended Warranties Provide the Same Coverage

    Many people believe that warranties are all the same and provide the same coverage. This belief is entirely false. Warranties, also known as service contracts, vary from company to company. Different companies also have multiple policy options, so they are definitely not the same, so don’t pick the cheapest one because it might not be what you want.

    You want to research companies and compare policies to see the most cost-effective policies that provide the coverage you want. Some companies offer rental reimbursement and travel protection, and others don’t. Other companies also offer 24/7 roadside assistance as part of their packages.

    Beyond available perks, warranties can also be tiered depending on the company. The least expensive warranties cover the major components, like the engine or transmission. More costly options exist and are similar to a bumper-to-bumper warranty with more coverage for your car. Do yourself a favor and compare coverage and quotes to get the best extended car warranty for your needs.

    Buying an Extended Warranty Extends or Doubles Manufacturer Coverage

    Buying an extended warranty does not mean that your manufacturer warranty gets extended. Your manufacturer’s warranty ends at some point, and that is when your extended warranty kicks in. They are not the same. A manufacturer’s warranty is covered by the manufacturer and is typically set for a predetermined amount of time or mileage.

    An extended warranty is different in that you can purchase one for specific coverage. Your extended warranty will only cover particular things, compared to a manufacturer’s warranty which covers just about everything. While the manufacturer’s warranty may have covered your starter, it likely is not covered under an extended warranty. The two warranties are entirely different types of coverage.

    Your Extended Warranty Covers Everything

    Most people don’t read the fine print because it’s difficult to read and can be challenging to understand. This is one instance where you want to take the time to understand what is contained in the fine print because you need to know what is indeed covered.

    A car owner will often go into the dealership where they purchased their new car a few years prior for a routine oil change. While the vehicle was under the manufacturer’s warranty, the dealership may have included complimentary oil changes. Once it is under the extended warranty, that is no longer the case. Perks change, and you need to know what to expect with your extended warranty.

    You may have a warranty that only covers the engine or transmission. If you’re lucky, maybe the contract also covers some electrical work that might need to be done. Often, that isn’t the case, as brokers, dealers, and warranty companies don’t always explain your coverage in detail. When in doubt, ask questions about the parts of the car that are covered so you know what you’re getting into if you purchase a warranty.

    Extended Warranties Can Only Be Purchased From Dealerships

    Often, people believe that they can only purchase an extended warranty from a licensed car dealer. This is not the case. You can buy an extended warranty after purchasing a car from a dealer or a private seller.

    You also don’t have to purchase it right away. If you want to do some research first, you can look into how much the coverage you want would cost. With enough time, you can make an informed decision when you decide if your car is worth the cost of the warranty or not.

    Consider These Myths Busted

    There is a lot of misinformation about extended warranties. Taking the time to read up and learn about them is critical as you make a decision about them. Don’t fall for the high-pressure sales at a dealership to buy the warranty when you buy the car; you can wait. Research your options to get the coverage you want while understanding that the coverage is different from a manufacturer’s warranty. Read the fine print so you know exactly what it covers, and buy it when you’re ready from the company of your choice.

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