Should I Buy an Extended Car Warranty?
Reliability is always high on the list of priorities for car owners. As vehicles age, the likelihood of a mechanical or electrical failure naturally increases.
Extended car warranty coverage is seen as an investment in your peace of mind that limits financial risk. It will reduce financial stress in those unforeseen circumstances.
If you have a low kilometre vehicle and can afford to pay for repairs if something were to go wrong – then an extended car warranty may not be for you.
An extended car warranty kicks in after the manufacturer’s warranty expires. At the core of the “need” question is how long do you plan to keep the car?
If you trade in a car every two or three years, the manufacturer warranty that came with the car will cover you in the event of a breakdown. But if you plan to keep a car for five years or longer, an extended car warranty cover may pay for itself in the event of a claim.
Beware of policies that only cover specific items up to a certain cost. Some manufacturers’ car warranties require that you service your car exclusively at that dealership, which may not be the most convenient or cost-effective option for you.
Auto Auto Australia only offers a 5-Star product, where you will continue to receive the benefits enjoyed throughout your manufacturer’s car warranty.
We’ll cover you against the failure of mechanical and electrical components that were covered under your original manufacturer’s car warranty. In the event of a mechanical and electrical breakdown, we will rectify covered components up to today's market value of your vehicle. Be sure to read the PDS.
Advantages of an extended car warranty
Financial protection. In the event of a mechanical or electrical breakdown, extended car warranty cover will pay for itself quickly. This is especially true for luxury cars, where costs are typically higher for replacing items.
Increases a car’s resale value. The policy is fully transferable to the person to whom you sell your car. Cars with extended warranty cover usually sell faster and for a higher amount.
Drawbacks of an extended car warranty
You may not need to use your extended car warranty cover.
The best time to purchase protection is while you’re still under the original factory warranty. You don’t need to purchase an extended car warranty the day you’re buying a vehicle, you can purchase it anytime until the original manufacturer’s warranty expires. Waiting until your vehicle nears the end of the manufacturer warranty gives you the choice to purchase an extended car warranty when it’s most valuable and cost-effective to you.
