Car Extended Warranty Misconceptions

A manufacturer’s warranty barely lasts a year on new vehicles. Extended warranties keep your car covered for a few more years after the manufacturer’s warranty expires. So much skepticism surrounds extended warranties, and we don’t know what to believe. Here are five types of stereotypes we place on warranties and how untrue it is.

The product breaks down after the warranty expires: We believe extended warranties are a waste of time because the product will function until the warranty expires, then it breaks down. Can you explain those times where it breaks down before the warranty expires? Extended warranties are for those moments, and it does occur often. Companies who do this rarely stay in business because perceptive customers will see right through the fraud.

Extended warranties are free: Extended warranties cost money. The reason its free is that the total cost of the product is a lower price plus the “free” warranty. Once you use the warranty, fees such as labor, parts, and hourly work comes out-of-pocket while the extended warranty covers the rest.

Extended warranties cover everything: Don’t let bumper-to-bumper fool you. Extended warranties do not cover every car part. Routine maintenance, oil changes, and wear-and-tear items come out of your pocket, not the warranty.

You can obtain an extended warranty when an expensive problem arises: Some people attempt to acquire extended warranties immediately when the problem occurs. This unethical move comes with two requirements: a three-month wait period and a pre-existing car condition inspection. The extended warranty will find out about it and won’t cover the problem.

The warranty lasts as long as my car does: Cars have a 10-year, 100,000-mile warranty. Don’t let a sales pitch fool you; Extended warranties last for a limited time. Most warranties expire years before the 100,000-mile warranty arrives. In fact, it may say 100,000 or two years – whichever comes first. Usually, it’s the two years.

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