Apply Now
Apply Now

5 Myths on Extended Car Warranty Under the Spotlight

Posted by Auto Loan Solutions

Car warranty is something we take for granted. Not in the sense that we don’t appreciate it, but due to the fact we think we know exactly how it works. It is similar to how a lot of people treat their finances – they assume they’re making the best choices until they see their credit profile first hand. When it comes to buying an extended car warranty, it’s worth knowing what it entails and what it will cost you. After all, why buy coverage that doesn’t match your expectations. With that said, we’re going to focus on five myths about extended warranty that need to be clarified.

1. You can only buy a warranty from your dealer

Let’s dive into it – myth number one. It’s safe to say the overwhelming majority of drivers think you can only buy a warrantyA popular myth is that you can only buy car warranty from your dealership. from the dealership you bought your car from. That’s false. Contrary to what most people think, you’re not obliged to buy a warranty from the place you bought your car from. You have options. However, there is a reason why this myth may have started in the first place. It’s recommended that you buy extended warranty directly from the source – your dealership. At least you’ll have the confidence that if your car needs a fix or replacement, the mechanics working on your vehicle will have familiarity with it.

2. All extended warranties are the same

There is a language associated with car warranties. You can call them terms and conditions if you’d like, and a lot of individuals assume that they’re all the same. But they’re not. That brings us to our next myth – the assumption that extended warranties are the same. For emphasis, they’re different. It’s unwise to think that all plans are the same, because the price you pay relates directly to the level of service you’ll receive. It’s a basic principle. The more you put into it, the more you’ll get out of it. Additionally, warranties vary due to the clauses that are written on them. Some kinds of warranty may not cover certain situations (whereas others will), and you may receive replacements from used or recycled parts.

3. Buying extended warranty on top of manufacturer warranty means double coverage

Some people really try to “milk” (for lack of a better word) a warranty. It’s not that they’re crooks or criminals in any way – understandably, they just want to save some cash. So they think waiting to buy extended warranty will mean they’ll receive coverage for a longer period of time. Again, this is a myth. The cost of warranty increases as the car ages, so the discounts and savings you think you might attain over the long run won’t be there. Warranty companies know you most likely have coverage from a manufacturer, and provide you with a bit more, but not double the compensation.

4. Extended warranty means I don’t have to worry about my car

Extended car warranty doesn’t give you a free pass to ignore regular maintenance. This is a good one. There are some drivers who see warranty as a means for invincible behaviour, assuming that they’ll be covered for everything the car endures. It’s not true. You are still responsible for the maintenance of your car. With that said, it’s important for you to keep accurate repair records and receipts since failing to do so can affect the likelihood of getting your claims paid. Don’t neglect the basic care your vehicle requires, and follow the maintenance schedule that’s been mentioned for you in your driver’s manual. Avoiding major repairs costs and trips to the shop depends a lot on how well you keep your vehicle.

5. Warranty for mechanical breakdowns is the same as wear and tear breakdowns

Closely related to the myth of all warranty being the same comes another – the belief that mechanical issues and wear-and-tear are the same. They’re not. First off, you need to understand the differences. Wear and tear refers to the normal breakdown of a car part over time – an inevitable occurrence in all vehicles. A mechanical breakdown on the other hand, is a defect that is due to an error on behalf of the manufacturer, perhaps, resulting in a roadside emergency. Cars that have been recalled are good examples of a mechanical issue. Some contracts don’t cover wear and tear issues, so you have to make inquiries into whether you will receive this protection or not.

Waging the War on Warranty Myths

Ultimately, there are a few lessons you need to keep in mind when searching for an extended car warranty. Although it is a great thing to have, there are “boundaries” to these contracts, and you should be aware of them to avoid disappointments.

Read the Fine Print

Yes, it is small and there’s a lot of it, but the fine print is written for a reason. Again, it might seem like the intention is there to persuade from just signing away, but there’s a lot of info buried in those paragraphs. Don’t hesitate to read through it, and ask questions. It’s your right to know what your warranty covers.

It may seem tedious, but reading the fine print clarifies car warranty terms.

Don’t Make Assumptions

The theme that pervades this post is you shouldn’t make assumptions. As mentioned above, read the clauses and conditions surrounding your coverage. Also, don’t assume you’ll get the same features that your best friend, relatives or neighbours got – there are differences among extended warranty plans.

Beware of Who You Listen to

Finally, and related to the point on making assumptions, it’s a good idea for you to ignore the jibber-jabber of others. Like all other myths, they’re spread around by individuals who believe false information. And these falsehoods can cost you money! Your best bet is to speak with a dealer who will break down the facts for you.

Learn the Truth, Not the Spoofs

If you’re thinking about getting an extended warranty for your car, make sure you know how it works. Too many drivers buy on assumptions. The result is frustration due to money spent and benefits that are fantasy, rather than reality. Disappointment can also manifest when people lose out on the kind of warranty that would be useful to them, because they didn’t do their research. The lesson here is to dig deeper. Warranty varies from plan to plan, and even what’s offered by dealerships is likely to be different. So make sure to read up before buying to prevent those jack-in-the-box surprises that many people have to deal with.

Apply Now!