Why do I need a Warranty?
Anytime you purchase a vehicle, new or used , no matter the price, it is still a machine. Machines break down. The warranty is an affordable insurance policy for mechanical repairs. The factory warranty covers factory defeats, an extended warranty or service contract can cover more mechanical problems and long after the factor warranty has expired.
Why would I not be better to just pay outright versus buying warranty on a vehicle?
When you buy an extended warranty or service contract, you get an insurance policy. Those insurance companies play the odds. They hope you never use it. Will you claim on the warranty if a repair is need? The monthly cost of a warranty, usually 15-25 a month, is much easier to pay than the $1500-2500 repair bill. Usually it cost less to warranty a vehicle with a long term coverage with multiple repairs over the lifetime of the warranty, than it is for a single repair bill. When you use the insurances money or the extra expense, the insurance companies have negotiated rates that normal consumers can’t get based on the volume. This allows them to fix vehicles for less.
Will buying a warranty cover my vehicle in an accident?
Warranty or service contract is to cover the mechanical issues on that occur from daily use. It does not cover cosmetic damage. However, there are several aftermarket options for cosmetic damages such as wheels and tires, door dings and dent, windshield repair and key replacement.