The difference between an Automobile Warranty and an Extended Auto Warranty / Extended Service Program

 

 When you buy a vehicle you will be provided various options to buy along-side of it and one such choice is that of extended automobile warranty. Sometimes referred to as a service contract, or extended service program, an extended automobile warranty is designed to offset repair expenses following the purchase of a new or used automobile. In essence, an extended warranty is a safeguard against costly, unforeseen repairs. Not to be confused with manufacturer’s warranties, an extended warranty kicks in subsequent to the expiration of the manufacturer’s bumper to bumper warranty. An extended auto warranty is typically sold as a separate contract, and – unlike a manufacturer’s auto warranty – is not included in the purchase price.

You need to be aware of the benefits of this extended service program which coincide with this option even as you consider whether to obtain this kind of warranty for your car and this will assist you to find out whether an extended auto warranty is the suitable choice for you. There are a couple of benefits of having this kind of warranty. First, it provides the car owner of with peace of mind in recognizing that a number of aspects are covered. Because each warranty type will differ with regards to what’s covered under it, it’s imperative to peruse the extended service program document in order to see the coverage points included. By choosing an extended auto warranty you will understand that certain areas are covered on your vehicle in case something happens, which will result in the vehicle requiring to be fixed.

Extended auto warranties will also ascertain that your financial investment gets protected. Because many people live on a restricted budget, it is usually a good idea to put forth the finances whenever you have them in order that you won’t be caught short in the future should anything go wrong with the automobile and you’ll have to get it fixed. Besides, the cost of an extended automobile warranty is oftentimes much more reasonable as compared to what you would be needed to pay should one necessitate to have their car fixed in the future. As a result, by you spending a smaller sum of money in the beginning you might save quite a couple of dollars eventually should replacement parts or repairs be necessary for your automobile.

In the strictest sense of the word, this is not a warranty at all. Like auto warranties, this plan covers repairs for an agreed upon period of time. True warranties, however, are included in the cost of the car; extended auto warranties are actually service contracts, or extended service program because they cost extra and are sold separately. An extended automobile warranty may be bought at the time you purchase your vehicle; it is also possible to buy one much further along in your car ownership experience. If you are the type who prefers to be prepared for all eventualities, an extended warranty may be just what you are looking for. Considering the ever-increasing cost of car repairs, these service contracts do make a lot of sense. If you are interested in buying an extended automobile warranty, you need to know that the car service contracts industry is slowly moving away from the phrase “warranty” since it is confusing to consumers. Try looking for “Extended Service Programs” instead.

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