How do you explain extended warranty?
How do you explain extended warranty?
Extended warranties are policies that extend the warranty period of consumer durable goods beyond what is offered by the manufacturer. It covers the cost of replacement or repair of the product, if it is caused due to a manufacturing defect or poor workmanship.
What is extended product warranty?
On top of a manufacturer’s warranty, some retailers or dealers offer an extended warranty on products or vehicles (also referred to as service agreements, service contracts or maintenance agreements). It usually costs extra and may extend the amount of time you are covered should anything happen to your product.
What are the benefits of extended warranty?
An extended warranty helps by providing warranty coverage beyond the warranty tenure to help maintain the vehicle for a longer period. An extended warranty or vehicle protection plan helps to keep the vehicle running smoothly and hassle-free.
What are the types of extended warranty?
Primarily, there are two types of extended warranties – the one offered by the car manufacturers or their authorized dealerships and the after-market warranty offered by third-party vendors (third party would be an insurance or a warranty company).
What is the difference between factory warranty and extended warranty?
Warranties provided by the manufacturer as part of the vehicle cost typically cover only certain problems with the vehicle. Extended warranties or service contracts sold for an additional charge typically cover problems with mechanical and electrical parts not covered by the manufacturers’ warranty.
What are the advantages and disadvantages of an extended warranty?
Extended Car Warranty Overview
|Extended Car Warranty Pros||Extended Car Warranty Cons|
|They can increase your vehicle’s longevity.||There’s a chance you won’t need the coverage.|
|You can save on costly repairs.||Every contract has its exclusions and limitations.|
How long is the manufacturer’s warranty?
Manufacturer Warranty Plan Types
|Manufacturer Warranty Type||Manufacturer Warranty Details|
|New vehicle limited warranty||Covers the majority of car parts and pieces Known as bumper-to-bumper warranties Often lasts for 3 years or 36,000 miles Exact length and coverage vary by manufacturer|
What is the difference between a warranty and a protection plan?
A warranty often refers to new products from manufacturers such as electronics, jewelry, household items, or tools and can be purchased for a specified time and coverage. Product protection plans usually refer to similar coverage on pre-owned items.
Do I really need an extended warranty?
Extended warranties may give you peace of mind, but may be unnecessary for many of your purchases. Extended warranties are a bad choice if you plan on replacing the product before the manufacturer’s warranty is up. If you need to use the product for many years then an extended warranty is a good investment.
Is an extended warranty worth it?
Why an Extended Warranty Is Worth It. Extended warranties can be beneficial for big-ticket items that have a high likelihood of needing repairs in the future. This is because extended warranties transfer the risk of a major expense to the warranty company, either in part or in whole, and off the buyer’s shoulders.
Why to get an extended warranty?
Coverage of wear-and-tear components is one of the best reasons to get an extended warranty since that can cover things like brake pads, oil changes, filters, and clutches, all of which are items that get changed quite often during the lifetime of a vehicle.
Are extended warranties worth buying?
Yes, it’s worth buying an extended warranty on a used car. Buying a used car has tons of benefits; they usually have a lower price tag, hold their value for a longer amount of time, and most dealerships (including ours) have a larger variety for you to choose from.