Are Extended Warranties Worth It?

Car-buying paperwork
 

Omaha shoppers in the market fo a new vehicle or a pre-owned vehicle are going to be approached with the option of buying an extended service warranty, or a factory-owned extended warranty Depending on the driver’s intended use of the vehicle budget, an extended warranty can be an excellent investment to keep your car driving in tip-top shape! 

What are Extended Warranties?

An extended warranty is a warranty that you purchase usually after the factory warranty has expired to help cover mechanical issues that your car may have. Many extended warranties do not cover the same repairs and costs of a factory warranty, so you will need to ensure you will be covered for repair costs that could happen while diving in Bellevue. An extended warranty may be viewed as a safety-net for major repairs to the engine powertrain, transmission, and more that would be exceedingly costly.

Many extended warranties have additional packages that carry towing or roadside assistance packages making accidents or breakdowns much more manageable. Unfortunately, most extended warranty packages do not assist costs of vehicle maintenance. 

Extended Warranty Packages: New and Used Vehicles

Extended warranty packages may be purchased for new or pre-owned vehicles, but the deductibles and costs covered by the plan vary depending on the condition of the vehicle. Let’s take a look at what may or may not be covered with new an used vehicles:

New Vehicle Extended Warranty Package

Generally, when you buy a new vehicle, you do not need to consider an additional warranty package as most vehicles come with comprehensive warranty packages that last for a certain amount of time or mileage. The length of the warranty varies from manufacturer to manufacturer, but many offer bumper-to-bumper warranties for three years or 36,000 miles, whichever comes first. Powertrain warranties may last for up to 60 months or 60,000 miles.

Newer vehicles are designed and equipped to last for ten years So, if you do not plan to keep your vehicle longer than ten years, an additional factory plan is a great idea. The methods used when financing cars can also affect the warrant, so it is beneficial to research that aspect as well if you are financing.

Used Vehicles

When considering purchasing an extended warranty on a used vehicle, it boils down to the shape that the car is in at the time of purchase. When purchasing a pre-owned vehicle, it is smart to have an individual mechanic run a full diagnostic on the vehicle before you purchase it. This knowledge will help you decide if the car looks to be high maintenance. It is also important to take into consideration how long you plan to dive the car.

Pros vs. Cons of Extended Vehicle Warranties

Pros:

  • Can SAVE money!

Cons:

  • You may not utilize it
  • Extended warranties may not cover enough potential maintenance problems
  • You may be extremely restricted to certain manufacturers for re[airs
  • Extended warranty business can be volatile and go out of business

Extended Warranties at Honda of Lincoln

If you have additional questions about extended warranties, or questions about financing a new or – vehicle, contact our expert staff today. Honda of Lincoln in Lincoln will help you understand the ins and outs of extended warranty plans and financing process. Contact us today or visit our dealership for a test drive in your favorite models!

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2770 Yankee Hill Road
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