How An Auto Warranty Can Save You From Financial Ruin

What is an auto warranty? It refers to that umbrella of protection that covers certain car repair expenses. When you purchase a car, most of them don’t come along with an auto warranty. So, as a responsible car owner, it is your duty to acquire one for yourself.

Now, you might be thinking that an auto warranty is just another additional expense. That’s true, especially if you have to consider your car insurance and monthly payments. But when you think practically and consider things over the long run, an auto warranty is actually your best bet to shield you from financial ruin.

So, how does an auto warranty work, and what are its benefits? This article lists it all down.

1. It Gives You Financial Peace Of Mind

Nothing keeps a person up all night and stressed about things than matters relating to relationships, work, and finances. When you’re already living paycheck to paycheck, it certainly doesn’t help when you worry about any financial emergency that may arise, and then wonder how you’re going to pay for it.

One of these financial emergencies could come from your car. Accidents or repairs can happen anytime, often when you least expect them to. With an auto warranty, you’ve already got coverage for these financial emergencies. Even if they cannot cover the full amount, at least you don’t have to use up all of your income and savings just to cover up the cost.

It’s also important to note that an auto warranty is different from an SR22 insurance policy. While an auto warranty covers car repairs and maintenance, an SR22 insurance policy is a type of coverage intended for high-risk drivers. An SR22 policy is not necessary in most cases, but if your license is suspended or revoked due to a traffic violation, your Motor Vehicle Department (MVD) may require you to get an SR22 insurance policy to reconsider the reinstatement of your license. Visit this site to learn more about what an SR22 is, and how it is different from your typical car insurance.

2. It Balances The Complexity Of Cars

Cars today are getting even more advanced in terms of features and navigation. This is a good thing, but it can also be a bad thing especially when it becomes more difficult to decipher when your car is going to break down.

For a new car buyer, this can also be daunting, particularly when you don’t know what to expect. The added complexity and technological advancements also come with a caveat: they’re also machines that are susceptible to breaking down.

The more complicated and technologically advanced a car is, the higher the repair costs would be. In most cases, you have to find specialists or accredited repair personnel to have your car fixed. Hence, it’s in your best interest to protect yourself from a potentially expensive car repair.

3. It Offers More Flexibility

A separate auto warranty often comes with more perks and flexibility than the manufacturer’s warranty per se. With the latter, the repairs are restricted only to a specific dealership. But when you pay for an extended auto warranty, you can choose where you want to have your car repaired.

Because you can freely choose where you want to have your car repaired, it also means you have the freedom to compare the best quotes and deals for it. With the best rate, you can maximize the price of your warranty, as this also means lesser out-of-pocket expenses that you’ll have to pay for.

4. It Protects Your Budget

Fourth on this list may seem apparent but this financial benefit can’t be highlighted enough. Cars are expensive to repair. And obviously, you wouldn’t want to forego fixing it simply because the budget is tight. The expenses will pile up one after another especially when your monthly expenses are already high.

Without an extended warranty, your budget will suffer. Either you’ll have to deplete your savings, or have some aspects of your payables suffer for that month so you can first prioritize paying for that repair.

5. It Increases The Resale Value Of Your Car

This fifth financial advantage applies if you’re the type of car owner who foresees that perhaps three or five years down the road, you’re going to re-sell your car so you can buy a new one. When you re-sell a car, you can’t expect to profit from it. Remember that the older the car is, the more it depreciates in value. So, you’ve got to settle for the fair market value and hope that your car could fetch a reasonable sum.

One good way for you to increase your car’s resale value is to have that extended auto warranty attached to it. Potential car buyers are going to be more attracted to cars that come with extra protection than those that don’t. So, you can price your car a little bit higher simply because it comes with an auto warranty.

6. It Enables You To Keep Your Vehicle For A Longer Time

Cars typically have their respective lifespan. There’s no universal timeframe for this, as it would depend on your car’s brand and model. Most car owners, however, would want to maximize the lifespan of their car. This means that they want to keep the vehicle for a longer time and increase its tenure. And you can achieve that by having an auto warranty.

The reason is simple. This warranty ensures that whatever maintenance and repairs that need to be done—from minor ones to bigger problems, will be cared for competently. Otherwise, when car issues are left to progress, then the lifespan of your car will certainly dwindle.

The better you take care of your car, the higher the likelihood that it can work as efficiently as it should for a longer time.

Conclusion

As you can see, many of the advantages of having an auto warranty are geared towards enabling you to save money in the long run. Extended car warranties aren’t exactly a necessity. But given that you never really know when a problem comes up, it’s nice to have that protection so your out-of-pocket expenses may be significantly reduced. You can liken this to your car insurance policy. Certainly, you won’t enjoy paying for it. But you’ll be glad you did, once the need arises.