Buying a new car is an exciting experience, often accompanied by the allure of the latest technology, improved fuel efficiency, and that all-important new car smell. However, with this major investment comes the question of how best to protect it. One option that often arises is the purchase of an extended car warranty, but are they worth it for new cars?
In our comprehensive guide, we will delve into whether an extended warranty is worth it for new car owners, examining the benefits and drawbacks, the costs involved, and what standard new car warranties typically cover. We will also discuss why our extended car warranty policies at ALA are the best choice for you and your vehicle.
Is it Worth Getting Extended Warranty on a New Car?
Deciding whether to invest in an extended warranty for a new car involves considering several factors. An extended warranty offers coverage for repairs and maintenance after the manufacturer’s warranty expires. While it may provide peace of mind, it’s essential to evaluate whether the benefits justify the additional cost. There are various factors to consider, include:
The Existence of a Manufacturer Warranty: most brand new cars nowadays come with a manufacturer warranty, some lasting for five years or more. If your car still has a manufacturer warranty in place, you don’t need an extended warranty policy until the existing one runs out.
Your Driving Habits: Consider how much and where you drive. Extensive mileage or frequent driving on rough roads can lead to quicker wear and tear, making an extended warranty more appealing.
Duration of Ownership: If you plan to keep the car for a long time, an extended warranty might be beneficial. However, if you typically upgrade to a new car every few years, the manufacturer’s warranty might suffice.
Financial Peace of Mind: An extended warranty can offer financial security, as it can protect you from unexpected repair costs. For those who prefer a predictable budget without large, unexpected expenses, this could be a valuable consideration.
What are the Upsides and Downsides to Purchasing Extended Car Warranty?
Before committing to an extended warranty, it’s crucial to weigh the pros and cons. While an extended warranty can provide several benefits, it also has its limitations.
Upsides
Extended Coverage: Once the manufacturer’s warranty expires, the extended warranty continues to cover major mechanical issues, which can save you money on costly repairs.
Peace of Mind: Knowing that potential repair costs are covered can reduce stress and provide reassurance, especially if you are not financially prepared for sudden expenses.
Increased Resale Value: A transferable extended warranty can make your car more attractive to potential buyers, potentially increasing its resale value.
Convenience: Many extended warranties include additional perks, such as roadside assistance, rental car reimbursement, and trip interruption coverage, adding an extra layer of convenience. Our policies at ALA come with a £100 provision for hotel accommodation or rail fare needed if you are stranded, as well as £50 towards the recovery of your car.
Downsides
Potential for Overlap: If the extended warranty starts while the manufacturer’s warranty is still active, there may be a period where you’re paying for redundant coverage. Therefore, if your car is brand new, extended car warranty won’t be the best choice.
Reputation of the Provider: The quality of extended warranties can vary significantly between providers. Some may have strict terms, require proof of maintenance, or be challenging to deal with during claims. Luckily, at ALA, we come highly rated on Trustpilot, so you can rest assured you are in good hands.
How Much Will Extended Car Warranty Cost for a New Car?
The cost of an extended car warranty can vary widely based on several factors, including the make and model of the car, the level of coverage, and the duration of the warranty. Here’s a breakdown of the elements that influence the price:
Car Make and Model: Luxury and high-performance vehicles often come with higher warranty costs due to the potential expense of repairs. Conversely, more common, reliable models might be cheaper to cover.
Coverage Level: Basic extended warranties cover major components like the engine and transmission, while more comprehensive plans might cover electrical systems, air conditioning, and more. The broader the coverage, the higher the cost.
Duration and Mileage: Extended warranties are available for varying terms, typically ranging from three to seven years or more. Longer terms and higher mileage limits increase the cost.
Deductible Options: The deductible is the amount you pay out-of-pocket for each repair. Lower deductibles generally mean higher premiums, while higher deductibles can reduce the upfront cost of the warranty.
Before deciding on an extended warranty, it’s important to understand what a standard new car warranty typically covers. New car warranties, often provided by the manufacturer, generally include several types of coverage:
Basic (Bumper-to-Bumper) Warranty: This covers almost everything in the vehicle, except for items that wear out, such as tyres, brake pads, and wiper blades. The duration usually ranges from three to five years or 36,000 to 60,000 miles, whichever comes first.
Powertrain Warranty: Covers the engine, transmission, and drivetrain components. This warranty often lasts longer than the basic warranty, sometimes up to 10 years or 100,000 miles.
Corrosion Warranty: Provides coverage against rust and corrosion, often lasting up to seven years with unlimited mileage.
Emissions Warranty: Covers components that affect the car’s emissions, which is important for meeting environmental standards. This can last up to eight years or 80,000 miles.
Roadside Assistance: Some new car warranties include roadside assistance for a certain period, covering services like towing, lockout assistance, and flat tyre changes.
It’s important to note that these warranties generally do not cover routine maintenance (like oil changes and brake pads) or damage from accidents, misuse, or natural disasters. We have three levels of cover at ALA; visit us here to see which is the best choice for you.
Extended Car Warranty with ALA
At ALA, our policies can start as soon as your manufacturer warranty runs out, with unbeatable coverage last from one to three years with the option to renew. We do not require a pre inspection, and we also provide continental cover and zero excess for your peace of mind.
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