Is Dealership Warranty Worth It?

Perhaps you have something you truly value. However, this will not be in its functional state for too long. Sometimes, this can get damaged. It can be a hassle. This is quite similar to owning a car that you use a lot. There are instances when things will go awry. Nonetheless, if you choose to purchase your vehicle from a dealership, they will offer you a dealership warranty . It is like an agreement that the dealership will handle the repairs and expenses once your car malfunctions.  

It’s like having a personal repair service you can depend on whenever your car experienced troubles. However, it is advisable to read the warranty since there are instances when this will not cover everything. For example, if the vehicle acquired damage due to a tornado or was stolen, your dealership warranty may not cover you. Just make sure that you understand all clauses of the contract before you affix your signature. 

Pros and Cons of Dealership Warranty  

When buying a vehicle from a dealership, they will likely offer you a dealership warranty . It is defined as an agreement to ensure that your car is fixed for free if something goes wrong. Nonetheless, few people know its restriction or how long it will last. Not everyone is aware of the things required and how much they cost. To help you decide, we’ve enumerated the advantages and drawbacks to help you make the better choice.  

Pros of Dealership Warranty  

Save Money on Expensive Repairs  

Car repairs can cost a lot, sometimes even thousands of dollars! That’s why it’s crucial to have an extended dealership warranty. It’s like having a superhero who helps you pay for repairs when your car is sick. Nowadays, cars are like giant computers on wheels, with lots of complicated technology inside. So, if something goes wrong with all that tech, you don’t have to worry because your extended warranty covers you. Whether you drive a fancy Tesla or a tough Ford, you can relax and enjoy the ride, knowing your car is protected for a long time.  

Customizing Your Coverage  

An extended dealership warranty can be like the support that your car’s existing warranty needs. It is custom-tailored to your specific needs. Imagine your car has a great powertrain warranty, but you’re worried that the rest of your vehicle is unprotected. An extended warranty lets you fill those gaps and ride off into the sunset with complete peace of mind. Whether cruising in a sleek sports car or a sturdy pickup truck, an extended warranty can be your powerful support for the long haul!  

The Dealership will Handle Everything  

Those new in the market will find the car buying process exciting. However, you will soon realize it is a hassle with many things to choose from and various factors to consider. You want to ensure that you are doing the right thing and that the car you purchase is in top-notch condition for as long as possible. But let’s be honest, even the most durable vehicle will not remain functional for a long time. Unexpected repairs can be a major hassle.  

That’s where extended warranties become essential. People might think that is an extra expense, but it might be worth it for some. With this, you can take a breath, knowing that any repairs or maintenance your car needs will be taken care of. No more worrying about finding a reliable mechanic or breaking the bank to pay for repairs. Plus, the dealership will handle all the details. Getting you back on the road in no time. 

Cons of Dealership Warranty  

Can be Expensive  

Extended warranties are like making a bet—you’re gambling that it’ll cost less than repairing your car without it. Generally, extended warranties can cost from $2,000 to $5,000. If you own a luxury car like a BMW or Audi, it might be wise to consider buying the extended warranty since luxury car repairs are pretty costly. However, if you have a reliable car like the Mazda CX-5, you could save money by not getting the extended dealership warranty. It’s essential to consider the odds and make the right decision for you and your car!  

May Have Restrictions and Limitations  

You get extra protection for your car when you get an extended warranty. However, it’s important to remember that most warranties won’t cover repairs due to regular wear and tear. Plus, there are usually a few things that won’t be covered no matter what—like replacing your brake pads or getting a new set of tires. So before you commit to a dealership warranty, read the fine print and understand what’s included and what’s not. You don’t want any surprises down the road!  

You Might be Tied Down  

Picture this – you’re cruising in your car, enjoying the open road, when you suddenly realize you’re itching for a new ride. But wait, you still have an extended warranty that you paid for! Don’t worry; some contracts are refundable, so you can get some of your hard-earned cash back. It’s essential to know your options and not feel trapped in a decision you made years ago. So if you’re considering trading in your car early, check if your dealership warranty is refundable and put that money towards your new ride! 

Factors to Consider When Deciding if a Dealership Warranty is Worth It  

Once your manufacturer’s warranty runs out, you might consider getting a vehicle protection plan or service contract. These plans can cover the costs of specific repairs and problems that arise after your original warranty expires. But suppose you don’t get a protection plan. In that case, you’re essentially self-insuring – taking on the risk and responsibility of paying for any repairs if your car breaks down after the warranty period. It’s crucial to weigh the costs and benefits of each option to make the best decision for your budget and peace of mind.  

Manufacturer Warranty  

To make an informed decision about whether to buy an extended warranty for your vehicle, it’s crucial to understand the original contracts provided by the manufacturer. These typically include a limited basic dealership warranty covering non-maintenance components for 36 months/36,000 miles and a limited powertrain warranty covering major parts for 60 months/60,000 miles.  

Other warranties, such as rust, tires, emissions, or batteries, can vary between manufacturers. It’s essential to consider the remaining time and mileage on these warranties and how long you plan to keep the vehicle before deciding if extended coverage is necessary. To get the best value, it’s recommended to purchase extended protection before the manufacturer’s warranty expires, as coverage and cost will likely decrease the earlier you buy it.  

Age and Condition of the Vehicle  

When buying a new vehicle, avoiding an extended warranty from the manufacturer or dealer is best. Most new cars come with a good dealership warranty that covers you for at least three years or 36,000 miles, giving you ample time to weigh your options. Don’t let the dealer pressure you into buying an extended warranty immediately. This is a red flag you must watch out for. 

Instead, take your time and consider other options. Credit unions and third-party providers can offer you better deals with more coverage for less money. Remember, you can purchase a vehicle protection plan at any time while your manufacturer’s warranty is still valid and sometimes even after it has expired. Just keep in mind that the cost of a plan increases as your car gets older and accumulates more miles.  

Reliability  

Nowadays, with just a few clicks on your computer, you can quickly determine whether a product is worth your money. When it comes to cars, you can turn to a website like Auto Sales Reviews to get the inside scoop from other car owners. But don’t stop there! You can also check out reputable sources like the Better Business Bureau, Trustpilot.com, and Google Reviews to ensure you make a wise investment. So why not take advantage of all the resources available and make an informed decision before purchasing your next vehicle? 

Before deciding on whether to get extended protection for your car, make sure to do your research. Using resources can look up your car’s specific model to see if there are any known issues. Some vehicles have a reputation for being unreliable, making the decision to get extended protection a no-brainer.  

Driving Habits   

Let’s face it, most of us don’t limit ourselves to driving just 12,000 miles yearly. That means if you have a typical manufacturer’s warranty, which usually lasts 36 months or 36,000 miles, it may expire sooner than you think. For instance, if you log 20,000 miles a year, your dealership warranty will be up in just 1.5 years! Conversely, if you’re a less frequent driver and log fewer than 12,000 miles yearly, your warranty will last three years. Remember that your warranty will expire after whichever threshold, years, or miles you reach first. So, it’s always a good idea to take a closer look at your driving habits before deciding whether or not to invest in extended protection.  

Financial Situation  

If you have enough financial stability to cover any costly repairs that come up without putting a dent in your budget, that’s fantastic news! You might not need an extended protection plan. This means you’re self-insured, which can give you peace of mind. However, if an unexpected major repair could wreak havoc on your family’s finances, it’s worth considering extended coverage. It’s better to be safe than sorry!  

Length of Ownership  

Are you a sentimental person who likes to stick with your trusty car for years, or are you more of a “new car every few years” type of person? This is an important thing to consider when availing of a dealership warranty. Once your manufacturer’s warranty expires, this coverage can give you peace of mind and financial security. Of course, if you prefer to drive the latest car make and model, this extra protection may be unnecessary. Still, the decision is up to you and your unique situation. Just be sure to weigh your options carefully before making a choice! 

Conclusion  

Cars today last longer than ever before, making an extended warranty unnecessary in some cases. In fact, a recent report by S&P Global Mobility Reports found that the average age of cars on American roads is over 12 years! This is excellent news for owners of domestic or Japanese cars, as these cars are typically less expensive to repair. While an extended warranty may provide peace of mind, it may not always be the best financial decision. Setting aside money in an emergency repair fund for these mainstream cars could be a better option. However, luxury and sports cars can be a different story. These vehicles may be rare and more expensive to repair, making an extended dealership warranty a wise investment for their owners.