Extended Warranty FAQs
Jun 30, 2017
Extended Warranty FAQs
Shopping for the right extended warranty, or vehicle service contract (VSC) can sometimes be confusing, especially for first-time buyers. Consumers often ask questions about what a warranty is, what they’re getting into, or they may not fully understand what their warranty covers. We’ve compiled a list of some common questions about VSCs and how they can help consumers and their vehicles.
What is an extended warranty?
As mentioned above, these can also be referred to as vehicle service contracts, so it’s important to note that they are the same thing. These are plans purchased by consumers that will cover costs of repairs, parts, and labor for their vehicle when there’s a problem with the vehicle itself of the vehicle’s parts.
Is there a difference between auto insurance and an extended warranty?
Yes! The two can work together, but the basic breakdown is this: auto insurance protects your vehicle and helps pay for repairs in the event of an accident. An extended warranty covers costs of a break down or failing parts.
Can I take my car anywhere for repairs with my warranty?
Often times, you can take your car to any dealership, national, or local mechanics to receive repairs or parts. However, not all VSCs providers will cover this, so it’s essential that you read your contract to see your options.
How long do contracts last?
This varies between contracts, so this is something else you’ll have to check your warranty for. Overall, most wind up ending when the vehicle reaches 100,000 miles or last anywhere from three to seven years.
Do I really need an extended warranty?
In the end, this is entirely up to you, but we highly recommend them. Buying a car is a large investment and you are most likely going to want to keep it in good condition. VSCs will protect your investment in the event that your car breaks down or if it needs new parts. This way, you’ll be able to have your vehicle covered without the extra costs.
What about a payment plan?
Talk to your dealership about financing your VSC and ask how to take advantage of 0% VSC financing. A payment plan provider like Omnisure offers 0% interest, no credit checks, no large down payment, and flexible payment plans up to 24 months. Be sure to ask your retailer for more information on payment plans that best fit your budget.