Barry de Klerk - When you are looking to buy a new or used car, there is so much paperwork that you sometimes forget to read it thoroughly.
Local vehicle dealerships are usually trustworthy, but they can sometimes omit certain things due to various reasons. We always have to remember that salespeople are under a lot of pressure. A lot of us know all about service plans and how they work, but what is an extended warranty? Is it not just a fancy name for a service plan?
The most important thing when you buy a car is to make sure you understand what you are getting yourself into and what exactly you will be getting out of the deal.An extended warranty, also known as a service agreement, is a prolonged warranty offered to clients when they purchase a vehicle.
It might be offered by the retailer or the manufacturer of the vehicle, adding to the product’s cost. Some of the extended warranties only become active after you have driven the car for a certain period. This is a contract between the car’s warranty provider and the new vehicle owner.
New cars come with a warranty that covers repairs for certain period of time or for a certain distance travelled. An extended warranty is basically offered by some retailers to renew or extend the contract for a few more years.
The warranty mostly covers mechanical, undercarriage, body and electronic damage, and may even exclude certain damages. Damage caused by vandalism, theft, dents, road salt damage, and environmental or natural disaster-related damages are usually not covered.
The warranty also does not cover the vehicle’s routine maintenance (this is where a service plan comes in). Extended warranties go into effect at the sale of the car. During the warranty’s period, buyers have the option to purchase an additional extended warranty from a third-party. Keep in mind that this is not an extension on the terms and coverages provided in the manufacturer’s warranty.
Remember to ask a salesperson at the dealership where you purchase your next vehicle, to explain exactly what their extended warranties entail.