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What Is An Extended Warranty For Used Cars And Is It Worth It?

November 1, 2022 by t3atlanta Leave a Comment

Many car buyers are looking for that extra sense of security, but extended warranties aren’t for everyone. Do you need that extended warranty for your car? Let’s take a look.

What is an extended warranty?

Reliability is one of the most critical factors for people searching for a new or used car. Beyond the safety and longevity of the car itself, most buyers seek the peace of mind that comes from knowing their vehicle will keep rolling long after its first significant bump in the road.

Extended warranties, often referred to as vehicle service contracts, are optional protection plans designed to provide assistance in covering the cost of various repairs during car ownership. These plans typically begin after the expiration of the manufacturer’s warranty, although there are instances where the two can overlap.

While a dealer can make an extended warranty sound like the best idea you’ve ever heard while strolling the showroom floor, these service contracts usually come with a high sticker price. Depending on the issue at hand, they won’t necessarily have you covered. On top of that, most people purchasing an extended warranty never actually use them, thus resulting in a cost with zero financial return.

Will an Extended Warranty provide a good value?

The most substantial benefit of an extended warranty is that it can save you a considerable amount of money if your car requires repair on a part covered under warranty. In instances like these, you would only be left responsible for payment of your deductible instead of the entirety of the repair. If your protection plan covers the repair in question, the warranty provider will handle the remaining cost of parts and labor. Having a trusted mechanic inspect the vehicle before closing the deal is an essential step towards that much-needed confidence and security in such an important purchase decision.

These plans are available from insurance companies, auto clubs, and dealerships. They can vary greatly in cost, duration, and what may or may not be covered under warranty. Those reading the details on these warranties are cautioned to read the fine print with a keen eye because many of these plans have different restrictions regarding which repairs are covered and on specific locations where the repairs are to be conducted.

Why an extended warranty may not have you covered

There are some potential drawbacks to consider before you sign that extended warranty paperwork.

An issue with Coverage

Extended warranties won’t usually cover anything that could go wrong under the hood. Always be sure what your plan does and doesn’t cover before you’re stunned by that whopping repair bill that wasn’t covered under warranty.

Depreciation clauses

Many warranties will strictly cover part of the cost of repair or replacement of parts contingent on the mileage of the car.

Redundancy

Most warranties place either the manufacturer, dealer, or third party as responsible for payment of repairs. If they were to go out of business suddenly, you would be left holding the bill and owner of a warranty worth nothing.

The smart move when looking to buy a new or used car is taking a pass on that extended warranty, focusing on finding a proven reliable model, and then making a point to maintain it properly. Keeping to the maintenance schedule of regular car inspections is genuinely the best warranty you can obtain for your car because you’ll know you are safe and secure in a vehicle that’s been properly maintained and serviced.

Car Maintenance And Repair At T3 Atlanta

T3 Atlanta has been Atlanta’s trustworthy auto shop since 1994, keeping Lexus, Infiniti, Toyota, and Nissan safely on the move. Comprised of the area’s top service technicians, T3 Atlanta provides our customers with an economical and efficient service that presents a much more robust and reliable value than any extended warranty on the market today.

If you are currently looking for a mechanic to inspect a vehicle before purchase or a trusted auto shop that’s committed to keeping your car serviced and safe, please give us a call to schedule an appointment with one of our skilled technicians today!

Filed Under: Car Tips, Infiniti, Lexus, Nissan, Toyota

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In 1994, our founder, Charles Wright, wanted to leave the corporate/professional environment and start his own company. After months of reading business planning books, he decided to establish an auto service company. He recalled reading that auto repair people were the first or second least trusted group of people among service providers, and Charles wanted to provide Atlanta car owners with a trustworthy auto repair shop. He learned how the service business was structured, and opened T3 Atlanta to offer customers an affordable and efficient service company. To learn more about Lexus, Infiniti, Toyota, and Nissan auto repairs at T3 Atlanta, please contact our office!

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T3 Atlanta
Smyrna Auto Repair
4000 Atlanta Road SE,
Smyrna, GA 30080
Phone: (404) 794-7700
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