Service contracts can save you a lot of money with mechanical problems after the original factory warranty expires, but every extended warranty is different.
To buy or not to buy the extended warranty. This is always the big question. For example, the Hyundai extended warranty is different than Toyota’s or a warranty from an independent provider. Here are some tips for finding the best extended warranty.
What Exactly is an Extended Warranty?
An extended warranty is a service contract you can purchase when you buy a car before the original warranty expires that will cover major repairs to systems such as the engine, transmission, and axles. Extended warranties do not cover wear and tear items such as tires, and they do not cover routine maintenance or repairs due to neglect.
Where to Buy Extended Warranties
There are a few different types of extended warranties. Some come directly from the manufacturer, such as the Hyundai extended warranty. Hyundai offers three different plans with different levels of coverage, and how much you have to pay for the plan depends on the level. You can purchase this type of warranty from a dealership.
The other type of extended warranty is a third-party warranty. These service plans come from independent companies and can be purchased directly from them, whether it is through a website or over the phone.
Choosing the Right Extended Warranty
There are lots of options out there, so it may take some research to get the right extended warranty. First, you’ll need to decide how much coverage you want. Some plans cover more types of repairs than others, but these will cost more. If you purchase a brand-new car with a reputation for reliability, you may just want a lower-level plan for that extra peace of mind. If you purchase a used vehicle that has some known issues, you may want a plan that covers more. Paying for the extended warranty could end up saving you money in the long run.
It’s Okay to Shop Around
Unless you are purchasing a service plan from the dealership when you buy a new car, shopping around for the best extended warranty is in you and your wallet’s best interest. Get quotes from several different providers and take some time to go over the details of each of the plans.
You’ll also want to look at where you can get service. Does the plan cover repairs at any service or repair shop? Third-party warranties will usually have more flexibility when it comes to repairs, but if you choose a manufacture-backed plan such as the Hyundai extended warranty, you’ll most likely have to have the repairs done at a Hyundai dealership.
Choosing an extended warranty is a big decision, but one that may just save you a whole lot of money in the long run. Just make sure to do some research before buying it. Once you have your warranty in place, you can enjoy some peace of mind knowing you have unexpected repairs covered.
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