Is a used auto extended warranty (purchased from a dealer) or vehicle protection plan from American Independent Insurance Group, right for you? This is an often debated topic, and it's easy to find convincing points for both sides of the argument. Those who question the financial wisdom of purchasing extended coverage claim that, in most cases, you will be spending money on something you will never use. But, the logic of this is a little skewed. We have all kinds of insurance plans that we hope we never have to use, but we understand that having them in place is both a smart and responsible thing to do.
Since the risk of my home burning down is minimal, should I choose not to waste my money on fire insurance? The likelihood of having to make a life insurance claim within a given 20 year term is statistically small – especially for someone with low risk factors – so am I throwing my money away by buying a policy? Of course not! The purpose of insurance is to give the policy holders peace of mind so they know that if something unexpected happens, they will have some type of protection and financial compensation.
Most people don't want to use their insurance – in fact, they hope they never have to. But, there's comfort in knowing that it's there. You can rest easier and sleep better because your family, your finances, and your carefully planned schedule are protected. It's not always about, “Will I get back what I put into it?”, but rather “Is what I do get back worth the investment?”
Those who argue that you may be throwing your money away are not living your life, planning your budget, or raising your family. It is true that you may go years and never use your warranty, but the first time you find yourself stranded on the side of the road with steam pouring out of your hood, 1/2 hour late for an appointment, and crying frustrated kids in the back seat, you will realize that your extended coverage is worth every penny.
Dealerships use manufacturer warranties as a selling feature for new cars; but, aren't vehicles more likely to breakdown as they age? So, if this protection is important for a new car, doesn't buying coverage for a used one make even more sense?
Having a used auto extended warranty or vehicle protection plan offers many benefits including:
- Protecting your budget. If you are on a fixed budget, especially a tight one, then a warranty can be beneficial. The monthly payments are part of your regular bills, and this planned expense can protect you from the unplanned ones. Transmission, engine, or electrical issues can be very costly, and just one repair can cripple an already strained budget. On the other hand, just one trip to the mechanic can more than cover the price of a warranty.
- Reducing Stress. The inconvenience of unexpected breakdowns can cause anxiety and stress. Besides the financial burden, you have to find someone to tow the vehicle if necessary, get estimates, choose a repair shop, find alternate transportation, and deal with any other number of details involved in getting your car back on the road. All this while still trying to keep up with your everyday life. But, if you have extended coverage, all you have to do is dial a toll free number and everything else will be taken care of. Your insurance provider will send outroadside assistance, negotiate with mechanics, handle all the billing, and provide you with a rental. You won't have to worry about getting ripped off by dishonest shops; you won't have to cancel any appointments or commitments; and, you won't have to wonder where you will find the money to cover the unexpected bill.
- Longer Ownership. Manufacturer warranties are usually valid for 100,000 miles; however, cars are built to last longer than this. And, the truth is that most major repairs don't happen within the first few years of owning a new vehicle. How many times have you heard someone say that their engine blew up or their transmission died two weeks after the manufacturer warranty expired? This alone is a good argument for purchasing extended coverage.The protection of a mechanical breakdown plan can lower the cost of vehicle ownership so you can keep your car longer. Driving a vehicle for even one year after it is paid off can save you $2,000 or more in payment costs so you can purchase great coverage and hold onto more of your hard earned cash.
- Increasing Resale Value. Buying a used vehicle can be risky. After all, you are never really sure how the car was treated, and appearances can sometimes be deceiving. A car that has been under warranty has usually been well cared for since the terms typically require that regular oil changes and recommended maintenance be completed in order to keep the coverage valid. Also, it is likely that all major problems were fixed in a timely fashion since there would be no out-of-pocket expenses for the owner. This gives the buyer peace of mind when purchasing a used vehicle, and many people are willing to pay a little extra for this reassurance. Many extended warranty and vehicle protection plans are transferable, which can also be a great selling feature and increase your car's value.
So, let's ask the question again: Is a used auto extended warranty or vehicle protection plan right for you? Well, if you like peace of mind and increased resale value then the answer is, “Yes”. If you don't like unexpected expenses or the inconvenience of mechanical breakdowns then the answer is, “Yes”. If you want to keep your car longer, save money and have a predictable budget then the answer is, “Yes”. Are you getting the picture? Extended coverage is worth the investment, especially if your priority is a relaxed, stress free driving experience.
Call Kirk Vanek today and get a quick easy quote! All you need is your VIN 702- 240-2558 or email kvanek@ajlvins.com.