Most people will probably tell you that as soon as a factory warranty runs out your car will almost certainly suddenly find itself in need of a major repair. For anyone who is actually planning to keep their vehicle after that point, purchasing an extended auto warranty, from a reputable company such as Warranty Nation, can be an extremely worthwhile investment.
As with anything else of course, an extended auto warranty, also sometimes referred to as an extended service contract, is a high profit product the price of which can be aggressively negotiated.
Purchasing an extended warranty at the same time as you buy the vehicle means that you can include the cost of the extended warranty into the financing of the car. That can result in just the one small bump in your car payment every month rather than having to pay out a lot of money in just the one lump sum. However, it is not necessary to purchase an extended auto warranty when your vehicle is brand new if you do not want to. This type of financial insurance can be added on to your ride at any point before the standard manufacturer warranty runs out, without costing extra. It might even be possible to add on the coverage even after the expiry of the factory warranty, although this is usually a lot more costly.
It is possible to select from extended auto warranty plans with different levels of coverage and deductibles, in a similar manner to shopping for insurance. The great majority of extended auto warranties offer three levels of coverage. The first level is about the powertrain, the second level adds coverage for additional components and the highest level offers completely comprehensive coverage, including expensive to fix electrical systems.
If you are planning to purchase an extended auto warranty, it is important that you think about the risk that you are willing to take. If you buy the highest, fully comprehensive, level of coverage, then there is no danger of you being caught out by the unpleasant surprise of finding out that a part which needs to be repaired or replaced is not covered by your warranty.
There has been a big increase in the number of people who decided to take out an extended auto warranty, the reason being the peace of mind that they provide in a time when costs seem to be rising everywhere.