Reliability is a top priority for buyers—Consumer Reports found that nearly 95 percent of buyers place reliability at the top of their priorities when buying a car. For some people, however, knowing a vehicle’s reliability is insufficient. They tend to be concerned about the warranty and protection as well.
Whether your business is buying a new car or extending the coverage of a new one, vehicle service contracts, also known as extended warranties, are a fantastic option. A vehicle is one of the most significant purchases that people make throughout their lifetime. Considering the amount involved, it is essential to know why an extended warranty could benefit your business.
Therefore, read more and understand why you should buy an extended auto warranty for your car:
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Tailored To Specific Needs
The original warranties provided by auto manufacturers have varying mileages and time limits. Thus, businesses with extended warranties offer more options and services. It’s possible to extend a warranty for specific car parts if some of them are still covered by your car manufacturer.
For instance, you can extend the bumper warranty only if the rest of the vehicle is still covered. Another example is offering 24-hour roadside assistance to new vehicles. This is one great advantage that you can get from extended auto warranties.
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Helps You Save Money
If you’re thinking of having a car for your business, you have to consider getting an extended warranty. A car’s prolonged warranty cost increases as it ages, similar to life insurance. You will pay less for an extended warranty plan if you purchase it in conjunction with your new car, as compared to buying it after your factory warranty has expired. With an extended warranty, you can save more money in the long run since your vehicle will need repairs as it ages.
If you own a model made by an unreliable brand, an extended warranty may ease your financial stress. A dealer, auto club, or insurance provider can offer these types of plans, sometimes referred to as mechanical breakdown insurance. There are a variety of methods to choose from, varying in length, scope, and price. Ensure to read and review your warranty because it will give you detailed information on its coverage.
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Covers Repairs
Vehicles today are more complex and equipped with advanced technology, including wires and gadgets. When such systems fail, diagnosing, isolating, and repairing the problem can be costly. A system failure comes with a pricey repair that will require you to find a technician to diagnose the problem, which increases the bill even more.
Extended warranties can cover these electronic, technological, and automated systems. You should carefully review the warranty provider’s list of exclusions. You can, however, save thousands of dollars on repairs using extended warranty coverage.
If you opt to buy one for your business vehicle, check whether it includes these technologies and other essential systems by asking the warranty provider for an exclusion list and thoroughly reviewing it.
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Takes Care Of Paperwork
Getting an extended warranty from a dealer is convenient because all the paperwork is taken care of for you. The dealer warranty can be more expensive, but the manufacturer will pay the dealer directly for services, so you won’t have to worry about extra payments.
Additionally, you can get your repairs done with more flexibility. Any dealership carrying that brand should be able to assist you. As long as they specialize in the same brand you’ve purchased, most manufacturers will allow their warranty to be used elsewhere.
In the event of an emergency while traveling, this is particularly useful. Businesses that require driving long distances in their operations will enjoy this option. It would be an excellent option for moving trucks, delivery vehicles, and so on.
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Smooth Transfer Of Ownership
You’ll probably decide to sell your vehicle within a few years. If your family grows, you may need something bigger. You may have earned a promotion and wanted to change your car model into something more luxurious.
One of the best things about extended warranties is that they can often be passed on to a new owner. This may be possible in some extended warranties and vehicle service contracts provided by dealers. By releasing yourself from the warranty you’re no longer using, the sale will proceed more smoothly for you. The warranty may be purchased if your contract permits it, so check its content before making a warranty purchase.
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Increases Resale Value
A small fee will usually be charged for transferring your extended warranty to a new owner if you decide to sell the car before it ends. The warranty is a valuable feature for used vehicle buyers since it gives them extra peace of mind. For the seller, it increases the resale value.
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Gives Peace Of Mind
A warranty extension gives you peace of mind. Although extended warranties cost a little more, their benefits outweigh the cost. Owners can rest assured that any repairs they’ll need will be covered.
If something goes wrong with your car, knowing that you are covered and protected by the warranty is a great relief. When your manufacturer’s warranty runs out, it can be nerve-wracking, but a warranty extension can relieve that anxiety. Using it, you will have more peace of mind when it comes to budgeting your car expenses.
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Various Coverage Options
Today, more companies offer the option of obtaining an extended warranty even if the original warranty on the vehicle has expired. An extended warranty doesn’t have to be purchased only for cars with an existing warranty that’s about to expire. If the warranties on a vehicle have indeed expired, the owner has the option of buying an extended warranty. The owner can select a coverage that suits the business’s needs.
Conclusion
Purchasing an extended warranty for your business vehicle is an excellent choice for people who have a fixed budget, want their investment to be protected, and aim to avoid unexpected repairs. These reasons make an extended warranty a worthwhile purchase.
Although extended warranties sometimes remain unused, they serve a similar purpose to health insurance. Although you might never need it, it’s always better to be safe than sorry. A warranty that covers all expenses is a lifesaver when significant repair expenses are needed.
Author: Roger Hans is an auto insurance specialist. He has been sharing his expertise with motorists to make informed car insurance decisions through guest posting. During his free time, Roger plays badminton and chess. He has a German shepherd dog named Russel.
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