It doesn’t matter if you have a manufacturer’s warranty or an extended warranty, at some point, it’s going to expire. So, what do you do? Do you wait until the time comes to deal with it? Do you just drive the vehicle without one since you intend on trading it in shortly anyway?
From a financial standpoint, the last thing that you probably want to do is spend money on something you’re not sure if you’ll even use. However, as with anything else in life, you always seem to need something once it’s not there. It is never a good idea to drive a vehicle not covered under warranty because it can break down without warning. More often than not, it is the expensive repairs that are needed when you’re not prepared.
Buying an Extended Warranty
Some people are unaware that extended warranties can be purchased at anytime. This means that when your warranty expiration has sneaked up on you and you’re now in a panic, you can relax. All you have to do is decide which type of extended warranty that you want and it will become valid immediately when you purchase it. Some providers and dealerships will even offer financing on these if you don’t want to use your credit card.
It is important to note that extended warranties can only be purchased for vehicles that are in good working condition. Unfortunately, if your vehicle is in the service department with engine problems or needing any other type of repair, you are not going to be able to add a warranty on it until the repairs have been done.
While you may want to just wait until your current warranty runs out to purchase additional coverage, this will end up costing you more money. You may not be aware that the older a vehicle is and the more mileage it has, the more expensive a warranty is to purchase.
Therefore, if your new vehicle comes with a 3 year/36,000 miles warranty and you’re thinking about adding on one that will cover up to 100,000 miles, you should do it at the time of purchase. It will cost you more if you wait and not only that, it’s easy to just finance the cost right into your payment. For most people, it’s easier to pay a little extra monthly than it is to come up with one large lump sum.
Not sure how long you’re going to keep the vehicle and you don’t want to waste your money? No problem! Most warranties will offer you a prorated refund for the balance of the time and mileage remaining when you trade it in. On the other hand, you can sell your car with the warranty and transfer it over to the new buyer. Most people would be thrilled to pay a little extra and already have a warranty so they don’t have to fuss with getting one.
Previous Repairs Not Handled
It should also be noted that if your warranty expires and your car needs a repair done on a part that was previously fixed but apparently not done right, you can file a claim. If that repair should have been handled properly prior to your warranty expiring, it is not your responsibility to cover it. You may have to put forth a little effort to get it handled but you are entitled to a proper repair.
Philip Richards is a writer for an extended car warranty website that gives consumers helpful tips on choosing the right warranty and getting the most out of it.