An extended warranty is basically an insurance policy for the vehicle that safeguards against expensive and unforeseen repairs of the car.
Most manufacturers usually offer two-years of standard warranty during the car purchase and some offers 3-years standard warranty.
These days, the parts of the cars are expensive to replace, therefore, it is always advised to go for an extended warranty plan.
• It is always good to start the extended warranty with the delivery of your car. One should not wait until later as some plans have restrictions on renewal or one may just forget.
• If you plan to keep your car for more than two years, it is also advisable to extend the warrant of the car as the standard warranty is for two years or 50,000 km.
• Some extended warranties ends when one sells his/her car. A warranty that lets you transfer it to a new owner is a good selling point for prospective buyers.
• Some warranty contracts state that repairs must be performed at the dealership from which the warranty was purchased. Therefore, it is always good to opt for a warranty that gives few service locations to choose from.
• Always check before what the service contract covers breakdown as well as wear and tear.