by Mike Jones, President and CEO
New car shopping can be so much fun! But it can also be a lot of work thanks to all the research most people do before buying a new car. If you’re getting ready to buy a new car, have you looked into an extended vehicle protection plan or extended vehicle warranty? Why would I suggest that you consider an extended vehicle warranty for a NEW car? Because in many cases, this is the best time to buy one.
Vehicle Warranty vs. Vehicle Protection Plan
Before we go on, let’s take a quick look at the two types of extended protection – an extended vehicle warranty and a vehicle protection plan – and what they offer. An extended vehicle warranty is extended protection that is sold by an authorized dealership or the manufacturer. Only the vehicle manufacturer can sell a valid extended warranty. Any other type of extended protection is known as a vehicle protection plan, mechanical breakdown insurance, or an extended service contract. While only a manufacturer or authorized dealer can sell an extended auto warranty, all the other plans can be sold by dealerships or by independent providers. All these plans generally cover at least part of the costs for specific repairs and problems after the original manufacturer’s warranty is expired. Also, many vehicle protection plans include additional features and benefits like roadside assistance, rental car reimbursement, and more.
3 Reasons to Buy Extended Protection for a New Car
New cars come with a manufacturer’s warranty, so wouldn’t buying an extended car warranty or vehicle protection plan give you double coverage? Nope. There are vehicle protection plans that have been designed with the original manufacturer’s warranty in mind and priced accordingly. These plans are typically longer than what you can get for a used vehicle. For example, a vehicle protection plan for a new vehicle can last as long as 7 years – 4 years (or more) beyond the typical manufacturer’s warranty length, depending on how many miles you drive per year. Therefore, you should consider the cost of the plan broken out over 4 years to determine the annual cost.
Another reason to buy extended protection for a new car is cost. You will get the best value when purchasing extended coverage for a brand new vehicle. If you wait until your original warranty expires, you will pay more for a vehicle protection plan because your car will be older and have more miles. Even though you have to pay for the extended protection sooner, you will probably save on the overall cost of the protection by purchasing it for a new vehicle.
Another reason to buy extended protection for a new car is this: you could run out of warranty coverage before you expect. Most new vehicles come with a 3-year/36,000-mile manufacturer warranty, but that can run out quickly if you drive more than 12,000 miles a year. According to the U.S. Department of Transportation’s Federal Highway Administration, the average person drives around 13,500 miles per year. This means that most people’s original warranties will expire before the 3-year mark. Furthermore, for drivers who drive just a bit more than average – 18,000 miles a year – their warranty will expire after only 2 years. Locking in a vehicle protection plan or extended warranty when your vehicle is new ensures you will never be without coverage on your vehicle. Plus, you won’t overpay for it, which can give you peace of mind and protect your car and your wallet.
Would you like to learn more about your options for a vehicle protection plan for your new car? It’s always a good idea to research a few companies and get multiple quotes. I invite you to begin with autopom! Our agents are ready to help you find the plan best suited for your vehicle and your budget.