Extended warranty is a protection that covers the cost of repairs on your vehicle should a mechanical breakdown occur. Policies vary in coverage and length, and can be adjusted to fit your particular needs.
To determine whether an extended warranty is right for you, consider the following:
- How long am I keeping my vehicle for?
- Is there already coverage from the manufacturer?
- How old is the vehicle I’m buying? How many kilometers does it have?
- Can I afford a repair on my own if I don’t have coverage?
- Do I have a back up plan if I can’t afford a repair?
- How many extra gadgets and technology are in the vehicle I’m buying?
Like anything, the older a vehicle gets and the more kilometers it has, the higher the chance of something on it breaking. The cost of repairs has increased in the last several years due to having more electronics and technology in vehicles. Repairs can cost anywhere from a few hundred dollars, to a few thousand, so this can make it difficult for some purchasers to pay for unexpectedly.
When to buy and when to pass:
Buy:
- The car you’re buying is older and has lots of kms
- You don’t have a way to pay for repairs if they occur
- The manufacturer’s warranty is expired, or will expire before you intend to sell the vehicle
- You would rather spend a little more each month than cover a large sum all at once
- The vehicle you’re buying has lots of electronics and technology
Pass:
- The manufacturers warranty exceeds the length of time you intend to keep the vehicle
- You have some money put aside to cover any unexpected repairs
Important questions to ask the dealer:
- Do you get your money back if you don’t use it?
- Are any repairs excluded?
- Is there a limit to the amount you can claim?
- What is the deductible?
- Is the policy transferrable if you sell the vehicle?
- Can I buy warranty later?
Feel free to reach out to us directly at 1-855-829-8408 and we’d be happy to answer any questions you may have!
