Is a New Car Warranty Included or Will It Cost Extra?
Drivers often wonder whether a new car warranty comes with the vehicle at no extra cost, or if it requires an additional payment. Understanding the nuances of new car warranties can help you make informed decisions about your car purchase and maintenance.
Standard Warranty Coverage Included in the Price
When you buy a new car, the fact is that many manufacturers do include a warranty in the price of the vehicle. This standard warranty, known as the manufacturer’s warranty, typically covers specific repairs and services for a specified period or mileage, such as three years or 36,000 miles, whichever comes first. This warranty is designed to protect you and the manufacturer from the risk of unexpected major repairs that could arise during the early years of your new car.
Additional Warranty Options: Extended Warranties and Service Contracts
While the standard manufacturer’s warranty is usually included in the price, there are additional warranty options available that can cost extra. These are often referred to as extended warranties or service contracts. These warranties can be purchased separately at the time of buying the car or later, and they provide coverage beyond the standard warranty period. Extended warranties can extend the coverage to many more miles and years, giving you peace of mind for a longer timeframe.
The Real Cost Behind New Car Warranties
To understand the cost behind a new car warranty, it’s essential to delve into the manufacturing process. The vehicle manufacturer calculates the cost of the warranty into the overall price they set for the vehicle, which is then passed on to dealers. For many manufacturers, the cost of the warranty can range from 1% to 3% of the car’s price. This means that even if the warranty is included in the price, you are indirectly paying for it through the final price of the vehicle.
Should You Purchase an Extended Warranty?
Deciding whether to purchase an extended warranty or service contract comes down to your specific needs and financial situation. If you want extended protection that covers repairs and services beyond the standard warranty period, you might want to consider getting an extended warranty. However, if you are financially savvy and believe you can manage unforeseen repairs on your own, you might choose to forego the extra cost.
It's also wise to compare the cost of potential repairs against what an extended warranty would cover. Sometimes, the cost of repairs can be very close to or even exceed the cost of an extended warranty. In such cases, buying a warranty might not be worth it.
Additionally, some extended warranties come with additional services such as towing, roadside assistance, and rental car coverage, which can provide a good value for money. Compare different warranties from multiple providers to find the one that best fits your needs and budget.
Conclusion
When it comes to new car warranties, it's important to know that the standard warranty is often included in the price of the car, while extended warranties and service contracts are additional options that come at extra costs. Understanding the details and price of the warranty can help you make an informed decision that suits your budget and needs. Always research thoroughly and consider your options before making a final decision.