Understanding Extended Car Warranties
A lot of consumers consider buying an auto service contract, which can be purchased for a new or used vehicle. Since many borrowers are paying on a high-interest loan, these individuals are especially vulnerable to unforeseen car expenses.
In many cases, these unforeseen expenses can be rectified with an extended warranty. Valley Auto Loans completely understands what consumers go through when they’re trying to get approved for a car loan and have bad credit.
In fact, we’re very skilled when it comes to getting consumers approved. All consumers who’re thinking about purchasing an extended warranty should listen to what the SCIC has to say.
What the SCIC Has Said
Recently, a press release from the SCIC has provided consumers with some guidance, which educates consumers and makes it easier for them to purchase an extended warranty. If there is anything that consumers should avoid, it’s purchasing an extended warranty while knowing little about it.
How to Handle Extended Warranties for New Cars
Many new cars already come with a warranty from the manufacturer, so consumers would like to know when they should consider purchasing an extended warranty. It’s crucial that consumers understand that a typical vehicle contains nearly 10,000 different parts, and although the manufacturer provides a warranty, it usually only covers a small portion of these parts.
The manufacturer warranty usually doesn’t cover brakes, navigations systems, fuel systems, heating, air conditioning, suspensions, electrical and steering components. Consumers should also know that a manufacturer warranty doesn’t cover the wear and tear caused by driving the vehicle; it covers workmanship and component defects.
What Is Included In An Extended Warranty?
Consumers should be aware of what is included in an extended warranty. In most cases, an extended warranty includes towing, roadside assistance, 24-hour technical help, regular maintenance and comprehensive coverage.
Put simply, it covers the sunroof, air conditioner, heater, gas tank and all of the components that a manufacturer warranty doesn’t cover. However, there are some extended warranties that only cover breakdowns, but a complete warranty covers virtually everything.
Extended Warranties for Used Cars
Consumers want to know if they should purchase an extended warranty for a used vehicle. The short answer is yes, but it’s probably a good idea to avoid buying a warranty when it’s for an extremely low-value vehicle.
Consumers who own a used vehicle really do need the same protection that comes with a new vehicle. The main reason is because an extended warranty provides protection for everything that a manufacturer warranty doesn’t cover.
Also, the extended warranty will continue to protect a vehicle long after the manufacturer warranty stops working. However, consumers need to understand that an extended warranty is not auto insurance. A typical dealership will provide a 30-day warranty, but after that, it’s up to the consumer to purchase an extended warranty.
When looking for an extended warranty that fully covers the cost of repairs, consumers only have a handful of options to choose from. In fact, extended warranties that offer such a high level of protection are known to require a large deductible.
In The End
We help consumers get an auto loan even when they are considered to be a high risk, and a large part of what makes this successful is proper maintenance. After we help a consumer get approved for an auto loan, they’re responsible for keeping their vehicle running.
Before buying an extended warranty, you should always do your research. If you’ve done your research, then you shouldn’t have any problem determining if the dealer is offering you a fair price on the extended warranty.
Tips for Purchasing a Used Car Warranty When You Have Bad Credit
Do you need a used car service contract but have bad credit? Your unique situation will determine if you actually need an extended warranty or not. If you’re trying to get approved for an auto loan through Valley Auto Loans and have bad credit, you should never try to stretch your budget and make it conform to the car you really want.
One of the primary reasons why we help consumers get approved for a high-risk auto loan is because we want to help them rebuild their credit. Upon getting approved for an auto loan, it’s common for dealerships to offer a number of additional items. Dealers commonly give consumers the option of buying an extended warranty, and while most of the dealer add-ons are useless, the extended service contract can be quite useful.
There are some useful tips that consumers can use when trying to buy a used car extended warranty. For starters, it’s useful to find out how much coverage you currently have. It’s common for factory warranties to transfer over when purchasing a used car.
You should decide how long you’re going to own the used car, and if you plan on owning it for five to six years, then an extended warranty is probably a good option. If you got approved for a pre-owned vehicle from the manufacturer, then it should come with a used car extended warranty, but the length of the warranty might not be as long as you would like.
When deciding whether or not to buy an extended warranty for a used vehicle, you should ask yourself if you have the money to deal with unexpected repairs or expenses. Consumers who almost never have a lot of cash on hand should look into an extended warranty because they won’t be able to cover unexpected repairs.
Another tip is to consider whether or not the vehicle is reliable. If you believe the used car is very reliable, then it might not make sense to buy an extended warranty. Unfortunately, either way you look at it, you’re taking a gamble.
Considering Used Car Warranties
Consumers who get approved for a high-risk auto loan almost always end up paying a lot more money in interest than people who’re able to get a traditional loan. Due to the higher interest rate, a high-risk auto loan can soak up a consumer’s entire available budget, so it might not make sense to buy an extended warranty for a used car.
Be Aware Of the Contract Terms
If you’re buying an extended warranty for your used car, you should purchase a warranty that covers the full duration of your auto loan. By purchasing the warranty for the entire duration of your high-risk auto loan, you’re able to insulate yourself from the extremely high cost of future repairs.
Certified Used Vehicles
A certified used vehicle comes with a warranty from the manufacturer. Although such vehicles can be taken almost anywhere for repairs, it can cost thousands of dollars more to get the vehicle repaired when compared with what it would cost when using an extended warranty from an independent supplier.
At the end of the day, it’s crucial to compare plans and prices and research your options thoroughly. If you get approved through Valley Auto Loans for a high-risk loan, then you need to consider buying an extended warranty.
We always do our best to match consumers with appropriate lenders because we want them to have the best experience possible. When all is said and done, you’re the only person who can decide if you need to buy an extended service contract.
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