When you think about it, the most expensive asset you own (other than your house) is your car. Unless you are some sort of art collector or own an incredibly fancy watch, your four wheels are going to be the most valuable item you possess. But unlike almost every other expensive purchase, your car is used almost every day.
Whether you’ve saved up a lot of money to buy the car outright, or you are spreading the cost into manageable monthly finance payments, you will want to protect your vehicle from all the dangers and disasters that are lurking in the world. After all, you don’t want the money you’ve invested to go to waste.
One of the best ways to protect your car is through a car warranty. Covering all sorts of breakdowns and mechanical services, they can give you peace of mind as you go about your daily driving business. But what happens at the end when the coverage stops? Do you leave your car unprotected or go for something different? And what are the pros and cons of an extended car warranty?
What is an extended car warranty?
When you purchase your new car from Creditplus you will likely be offered a warranty that gives some protection to your vehicle. This warranty is normally seen as a ‘promise’ that if any covered defects or repairs are discovered after purchase, these will be addressed.
So, if the vehicle experiences a breakdown, develops a fault with the catalytic convertor or air conditioning, for instance, the warranty should cover the cost of repairing the vehicle to how it should be.
An extended car warranty is normally offered to provide a longer period of protection. These will generally cover mechanical failures and breakdowns, rather than wear and tear and consumables.
The pros of an extended car warranty
You never know when your car might break down. Having that little bit of extra protection can provide you with peace of mind when it comes to using your car. And with modern cars having more advanced technology, it’s not always as cheap or easy to replace a broken part than it used to be. While you may think you could repair it yourself cheaper, an extended car warranty takes all the hassle away from you and puts it in the hands of trained mechanics who know exactly what they are doing.
Another benefit of an extended car warranty is that it helps to preserve the value of your car. Having regular maintenance and repairs that is traceable to a future buyer shows that you have taken care to maintain your vehicle. So when the time does come to sell, you can show that the car has been well looked after and is in great working order.
And if there are any breakdowns or repairs, you will have a record what has been done. Some extended car warranties can also be transferred to other owners, which will give another reason for a potential buyer to complete the sale.
Are there any cons?
An extended car warranty normally comes with an annual mileage limit. If you exceed these limits, then your protection will likely be invalid.
Another potential downside of an extended car warranty is that not every provider will allow you to transfer the warranty to another owner, so if you decide to sell the car then you might not be able to get your money back for the coverage you don’t need. This is something to consider at the start of the agreement, is the car for the long term or short term? Choose a warranty that will match.
There is also the scenario that you don’t end up using the breakdown or warranty at all during the covered period. But, like with insurance, it’s better to have it and not need it, than need it and not have it. The only difference being is that you legally have to buy insurance, whereas you don’t have to buy a warranty product.
What to look for in an extended car warranty
When you choose your extended car warranty product, you should go for the coverage that you think you will need. Some are priced based on your annual mileage, so you should try and work out exactly how many miles you drive each year. The easiest way to do this is to look at the previous MOT records of your previous car, as it will give you the mileage reading for each year the car took its test. You should add some leeway on the limit in case you have any unexpected journeys.
You should also take a look at the garages the car warranty product works with. Most providers will have a selection of approved garages that they use for repairs. So, make sure there are approved garages near you.
Creditplus and car warranties
When you buy your car with Creditplus, we provide a six-month warranty as standard to give you additional peace of mind. You also have the option to extend the warranty for a longer period, should you want more protection. Your dedicated customer consultant will explain all the features and details as you go through the process so you can decide if an extended car warranty is right for you.
If now is the time to upgrade your vehicle, why not have Creditplus Find, Fund and Deliver your car - at no extra cost? With a wide range of finance options to suit all budgets, you could drive your dream car at an affordable monthly rate.
Apply Online to discuss your finance options with a car finance and leasing specialist today.