When going to a store for shopping, we always talk to the sales person about the quality of the product, price and the warranty it comes with. Most electronic appliances come with about a year’s warranty, and if we need more, we can pay and get what is called an extended warranty. This is safe for products that are expensive and warranty is a must especially if they get into some problem or repairs need to be done. For cars too, the concept of warranty is important, most cars come with 2year warranty and for people who want more, they can pay up an additional sum and get a 5year or even 10years warranty. This ofcourse varies with the country, and product, so check with your dealer on the cost of an extended warranty before signing on the dotted line
Even though it sounds easy, there is more than what meets the eye, so it is better for the buyer to be aware of what he is getting into when buying an extended warranty.
1. What does it cost:
How expensive or inexpensive will the extended warranty work out to? You need to calculate the cost of the car and add to it about 20% more to calculate this figure. There might also be some dealers who have different rates for different models of cars, so be sure to understand this before taking it up. Evaluate the pros and cons of pickling an extended warranty, for at times people who are in the habit of changing their cars every 2years will not need one, they will only be shelling out cost for no use.
2. What does it cover?
Warranty is extra protection for the product, which in this case is an automobile. If the spare parts are very expensive, then it makes sense getting extended warranty. Find out the cost of parts that are most likely to fail, or wear out and compare that with the cost of the warranty. It also ensures you get free service for any little problem you might face – like a sound coming from the engine, or window not working alright, and so on.
3. How prompt is their service?
Does the car company have a good on the road service? This means, you can travel to any part of the country and be assured of someone coming to your rescue the minute you have a flat or your battery dies on you. All this will be included in the warranty that you buy, and if the repair falls within the duration of the extended warranty.
When you are at a car dealer’s office, have a discussion with the manager in charge to understand the terms offered by them on the extended warranty. If it suits your needs, and what you had in mind, go ahead. But if it seems too expensive, or you know the car will not get into serious trouble, you can forego the same, taking a risk with the car.