Are Extended Warranties Worth It For New Cars?

For new cars, the warranty expires after two to three years. For customers, there is the possibility of the warranty extension. But the offers vary greatly read here to find out more.

While some automakers offer their customers from the outset no warranty extension, since there is already a long-term warranty, this period cannot even reach with other manufacturers with money and goodwill.

 Nevertheless, extended warranty companies for new cars have many brands in their portfolio, and usually, under the heading of repair insurance, similar products also offer some insurance companies. However, customers should take a close look before graduating.

Label frauds not excluded

In addition to the term, the costs vary greatly depending on the model. In addition, there are the following guarantees. Because the scope of services varies from that in the original warranty, an extension can then only conditionally be mentioned.

So customers should clarify whether the scope of the defined wearing parts is really the same. Because a warranty usually comes for spare parts and repair costs. Wear parts such as clutch plates, toothed and V-belts, tires and many engine parts are typically excluded.

Contract within the warranty period

As a rule, the contract with the car manufacturers must be completed within the new car warranty. Sometimes this is only possible directly on the date of purchase. In some cases, additional guarantees can be extended once more. Another condition of the brands:

The insurance occurs in an emergency only if the owner strictly adheres to the manufacturer’s maintenance intervals for the car. ‘Checkbook maintained’ is therefore mandatory. However, a warranty extension can be very costly. Depending on the model and running time, costs of several thousand dollars may be incurred.

Pros and cons of follow-up warranty

But are the vendor’s promises worthwhile? Generally speaking, there is nothing wrong with the guarantee of continuity, says legal expert Krämer: “It can be very useful if the scope of the service is broad enough, so there is no ‘rude awakening’ for buyers.”

In some cases, it may even pay off with the first use. If, for example, the bi-xenon headlamp breaks down, the repair can cost several hundred dollars. One of the pitfalls, however, is that customers are sometimes responsible for the cost of spare parts, depending on the mileage in the warranty.

As a rule, the contract with the car manufacturers must be completed within the new car warranty. Sometimes this is only possible directly on the date of purchase. In some cases, additional guarantees can be extended once more. Another condition of the brands:

The insurance occurs in an emergency only if the owner strictly adheres to the manufacturer’s maintenance intervals for the car. ‘Checkbook maintained’ is therefore mandatory. However, a warranty extension goes into the money. Depending on the model and running time, costs of several thousand euros may be incurred.