Is a Car Warranty Worth the Investment?
When you buy a new car, it will always come with a warranty that lasts between three and seven years. In many cases this means you probably won’t need to take out a warranty, depending on the age of the new or used vehicle and the manufacturer’s policy. Always check this first but if you’re looking to purchase a used car that doesn’t come with a warranty, or are considering taking out an extended warranty, there are a few things to
How Car Warranties Work
A car warranty basically covers the cost of repairs, protecting you against the financial burden. That’s why all new vehicles come with a warranty, as there shouldn’t be any issues within the first few years but after driving a few thousand miles it will be more likely to experience general wear and tear.
Car warranties differ, so always check what is covered by a policy and what/if there is a claims limit. This is the most an insurer will pay for repairs if you make a claim. A comprehensive car warranty will cover problems related to:
- Brake system parts
- Cooling system
- Fuel system
- Transmission system
Reasons for Investing
Not every type of damage is covered by a regular car warranty, which is why an extended warranty can be worthwhile. General wear and tear affecting things like the tyres, brakes, batteries and more won’t usually be protected with a standard warranty. Technology such as a sat-nav, radio and even air-conditioning may not be covered either.
Always check what warranty is included, as some used car sellers and dealers will offer some level of cover within the sales process. Whether you’re after an extended Audi warranty for your brand new executive car, or just want cover for a second-hand SUV that’s going to be doing a lot of mileage, investing can be worth the costs.
Is a Car Warranty Necessary?
Unlike car insurance, a warranty isn’t a legal requirement However, for financial protection and peace of mind, it is a popular option for many drivers. If you can afford the outstanding or monthly payments for a car warranty, then it can be a lifesaver if your car does need some expensive repairs.
Otherwise, you may be able to get by through saving up each month to cover the costs of any repairs, should they be necessary. A lot depends on your financial situation, car and the costs of taking out a warranty for your vehicles.