Buy Extended Warranty To Take Care of Costly Repairs


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Most car manufacturers offer you a standard warranty for the first two years or 40,000 kms, whichever comes first. However, the dealer will insist you to buy an extended warranty these days as you finalise your car and prepare to sign the cheque.

The extended warranty is offered for the third and fourth years or 80,000 kms. You can also buy an extended warranty for only the third year or 60,000 kms and then opt for the fourth year or 80,000 kms.

This warranty covers mechanical and electrical problems, problems relating to the engine and any other manufacturing defect and labour cost for the repairs. The price you pay for this extended warranty could vary depending on the model of the car and days elapsed since the purchase.

It could cost you about 1-1.5% of the price you pay for your car. Repairs can be carried out at any authorized service centre across the country, irrespective of the dealer you have purchased it from.

"Car users should opt for an extended warranty as it gives them peace of mind at a small additional cost. Even if one defect comes along in the car, it would more than offset the money you pay for buying this warranty," says Rajesh Sood, chief executive officer, ecardlr.com. As your car ages, there is a higher chance of parts within it failing. Since car components are costly and require labour to replace it, very often the cost is high.

Consider Maruti's WagonR for example. The WagonR VXI version costs 4.5 lakh (Mumbai). If you buy the extended warranty for the third and fourth year combined within 60 days of the purchase you have to pay 4,390. If you buy it within 61 to 365 days, then you pay 5,048 and if you buy within 366 to 730 days you end up paying 5,707. Simply put, the sooner you buy it, the higher the savings.

However, this warranty works only if you take your car regularly to an authorised service centre. If you get your car serviced by a roadside mechanic and any part has been tampered with, the company could refuse your warranty claim in the future. So if you have a Maruti extended warranty, you need to get your car serviced only at Maruti's authorised service centres across the country.

"Components or parts subject to wear and tear are not covered under the extended warranty," says Banwari Lal Sharma, AVP (marketing), carwale.com. Parts like tyres, batteries, and clutch plate will not be covered under the extended warranty. However, things like mechanical and electrical breakdown of parts like engine, gear box, steering, brakes, electrical items like starter motor, alternator, etc. are covered under extended warranty.

Car components are expensive and tough to repair. In many cases replacing them could be the only viable option. For example, take the case of your car air conditioner. You have a simple problem in the air conditioner and the mechanic tells you that the evaporator coil needs to be changed.

This could cost you as much as 12,000. However, if you have an extended warranty, this could be covered and you can save this amount. "On several occasions, electrical and mechanical parts in a car simply fail and there is not much we can do about it other than replacing them," says Rupesh Rele, a Mumbai-based automobile expert. Now if you were to buy these parts and get them changed you have to pay for the parts as well as the labour cost, which would cost you a lot.

An extended warranty is a safeguard against such expensive and unforeseen repairs.

"Irrespective of the time you plan to use your car, it makes sense to buy an extended warranty," says Banwari Lal Sharma. In case you wish to sell your car in between, the extended warranty is transferable, and it can add to the resale value of your car. It is better that you buy the extended warranty with the delivery of your car, as it gets costlier as time passes, or you may just forget to buy it.

Source: Economic Times
 
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Re: Buy extended car warranty to take care of costly repairs

You need to be carefull while buying extended warranty too as some of them are insurance based .
 

TSIVipul

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Re: Buy extended car warranty to take care of costly repairs

+1 to Raja.
Also extended warranty sounds very nice but when you go to the workshop to take its advantage you find that there are more condition applies than the advantages in most of the cases.
 
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Re: Buy extended car warranty to take care of costly repairs

+1 to Raja.
Also extended warranty sounds very nice but when you go to the workshop to take its advantage you find that there are more condition applies than the advantages in most of the cases.
+100 be careful of the exclusions in an extended warranty (and the same holds true for insurance)
 
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Re: Buy extended car warranty to take care of costly repairs

Extended warranty doesn't cover anything wear and tear, malfunction caused by the user, which is the case with warranty of any other product.

In case of Marutis and Hyundais, the after sales market is already mature and a user may not be better off by taking an extended warranty as he can find a solution immediately and efficiently within his reach. In case of manufacturers with lesser service centers, and lesser knowledge of their products amongst the car mechanics, a warranty may serve to be useful. Cars barring marutis and hyndais mostly would come under such category.

So, I feel if I go for an extended warranty for my polo, it won't be a bad choice. Atleast I can drive in those extended warranty periods without a fear of something going wrong, even if actually nothing does.

..my opinion
 

TSIVipul

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Re: Buy extended car warranty to take care of costly repairs

In my views extended warranty is a must for those German brands and their subsidiaries and some other brands,they are toughest to maintain when it comes to maintenance costs.While for Japanese/Korean or even Indian brands the need of extended warranty isn't that important.So,for brands like:-
VW,Skoda,Ford and German luxury trio then extended warranty is a must.
 
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Re: Buy extended car warranty to take care of costly repairs

In my views extended warranty is a must for those German brands and their subsidiaries and some other brands,they are toughest to maintain when it comes to maintenance costs.While for Japanese/Korean or even Indian brands the need of extended warranty isn't that important.So,for brands like:-
VW,Skoda,Ford and German luxury trio then extended warranty is a must.
+1 I also like to add other then car makers the price range in which the car is bought also does matter irrespective of car maker because more expensive the car the spares cost will be somewhat proportionate to it . Anything above 7-8 lacs extended warranty can be thought of.
 
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Re: Buy extended car warranty to take care of costly repairs

In my views extended warranty is a must for those German brands and their subsidiaries and some other brands,they are toughest to maintain when it comes to maintenance costs.While for Japanese/Korean or even Indian brands the need of extended warranty isn't that important.So,for brands like:-
VW,Skoda,Ford and German luxury trio then extended warranty is a must.
But these Germans already provide far better warranty period compared to Japs or Koreans. Audi has come up with some Life Warranty or similar. Need to find out more.

And VW provides warranty on its paint for 7 yrs. Not a single Japs or Korean maker gives even for 1 year.
 
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Extended Warranty - is it really needed ??

I have asked this question to salesman I have visited so far however didn't get a clear answer on this.
so what does extended warranty really cover ?

has anyone faced any issues after purchasing extended warranty ?

does it cover free replacement of engine parts within warranty period ?
 
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Re: Extended Warranty - is it really needed ??

Extended warranty as the name suggests extends your original warranty. It replicates the terms and conditions of your original warranty and adds one or two years as per your policy.
Generally everything apart from consumables and things like tyres & wiper blades etc are covered. Do read the T & C documents carefully.
Its not a must to have, but always good to have and I felt it was worth the money spent.

BTW, which car?
 
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Re: Extended Warranty - is it really needed ??

Extended warranty as the name suggests extends your original warranty. It replicates the terms and conditions of your original warranty and adds one or two years as per your policy.
Generally everything apart from consumables and things like tyres & wiper blades etc are covered. Do read the T & C documents carefully.
Its not a must to have, but always good to have and I felt it was worth the money spent.

BTW, which car?
+1, as mentioned by sudeep it's just an extension to your original warranty, regardless of the car or the brand EW is a must is what i feel.
 
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When I bought the extended warranty for my Scorpio in 2011, it was 10k. Have to check what the price is now.

My company CEO did not buy extended warranty for his Scorpio. In the 3rd year, when a transmission problem arised, he had to shelve nearly 40k [frustration]

No matter what brand or make the car is, I believe one should buy it. You never know when a problem can occur even in the safest cars and burn your pocket.
 
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We take extended warranties for all our cars, irrespective of price & duration which we want to keep. And extended warranty also increases the resale value of the car if you plan to sell it in less than 4 yrs. Atleast till the warranty is there, one has peace of mind. And things like rubber, lights etc. hardly cost anything to be required to be covered under extended warranty.
 
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what do you mean " we take extended warranties of all your cars"[surprise]

so if I take an extended warranty and tyre's wear out would you replace with new ones for free ???[:D]
 
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So I am still confused regarding the extended warranty thing. Should I get one for my Fluidic. When I enquired during the purchase of the car; it was for third year and for Rs12k and they said that it can be brought later also. When I went for the first service they quoted Rs10k if brought withing 60days from sale and some 12k within 365days of sale and the price keeps on increasing along with the conditions and service records of the car taken under consideration.
So should I go for it now? A couple of days left to complete 60days.[:D]
 
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