Buying a vehicle is certainly one of the largest purchases you are likely to make in your lifetime. With such a huge investment at stake, you do not want to let fate determine the functional health of your car. You’ll want to ensure your car is protected under an extended warranty plan. Used cars are slowly becoming a preference for many people owing to their low purchase price and the fact that they can offer services just as good as new cars. Because you are likely going to hold your car for some time beyond the EOE warranty, chances are you need to consider buying a vehicle service contract before the expiry of your manufacturer's, administrators, or dealership warranty. Here are some of the top reasons you should be thinking about purchasing an extended auto warranty for your car such as the CarGuard Warranty.
It Offers Protection to Your Car Long After Your Manufacturer's Warranty Expires
According to a survey conducted by IHS, the average length of new car ownership is 7 years compared to 5 years recorded in 2006. Many people are choosing to keep their vehicles longer and driving them for 100,000 miles or more. While all new cars come with factory warranties or dealership warranties, these warranties are limited to the miles driven or the years since the time of purchase. This means that after the expiry of the warranty, your car becomes unprotected, causing you not only worries but also means potentially high expenses in repairs.
A Single Major Repair is worth the Warranty
Let's be clear---vehicle repair costs can be pretty high. For instance, PC systems in modern cars can cost over $100,000 to fix. This means that paying for an extended warranty upfront will save you thousands of dollars in unexpected repair costs. Because the cost of a single repair can be higher than what you pay for the extended warranty, it means drivers can save tons of money in the long run.
Some Extra Add-ons are not included in the manufacturer warranties
The cost of a factory warranty may not be felt though because it is inclusive of the MSRP, but don't assume that’s all you need---it doesn't come with certain add-ons that every driver would want. For example, first-time car allowance, 24/7 emergency roadside assistance are just some of the lucrative extras that extended warranty policyholders enjoy. These extra coverage plans are not included in the basic manufacturer warranty plans. It is estimated that the average cost of an economy car rental per day is $45-$65, so your car rental cost can increase depending on the amount of time your car will spend in a garage during repairs.
Drivers can lock in savings when buying new cars
Just like life insurance, the cost of a vehicle service contract goes up as the age of the car advances. This means that purchasing your warranty on a new car will cost you far less than if you decide to purchase later following the expiry of the factory warranty plan.
Higher Resale Value for your car
Your extended warranty plan is transferable so if you decide to dispose of your car before it expires, you can recoup its cost at a higher resale price. Because the warranty gives the new buyer peace of mind when purchasing a pre-owned car, it means that new owners will be more willing to pay for the premium service in exchange for free future repairs.
Conclusion
Should you buy an extended warranty plan? A vehicle service contract is a great choice for drivers who are working on a limited budget yet are looking to protect their huge investment stakes in their car without worrying about the costly repair and replacement costs. If these fundamentals interest you, a CarGuard Warranty is the most applicable solution.
