5 Reasons Why Purchasing a Dealer Extended Warranty Is Smart

Cars last longer these days, and many people intend to keep their car for its entire life, or close to it. This means that an extended warranty is a good idea because a lot of the warranties that come with new cars only last for three years or 36,000 miles. Even if they're generous, the longest lasting warranties are ten years or 100,000 miles.

Because newer cars are jam-packed with computers and other technology, it's difficult to repair them on your own. There are many advantages to purchasing an extended warranty to cover your vehicle past the original warranty expiration.

To Fit Specific Needs

Believe it or not, you can tailor your extended warranty to fit your needs. If your original warranty had an extended powertrain warranty and a short bumper-to-bumper, you can extend only the bumper-to-bumper warranty. You may also choose to tack on some twenty-four-hour roadside assistance or a service plan that includes oil changes or tire rotations.

Sometimes it's easier to follow a car maintenance schedule when you have a warranty to cover it. You don't have to wait until you can afford an oil change to schedule one. Your next dealer oil change is already covered.

Cover Repairs and Technology

With all of the complex technology filling cars today, including computerized equipment, it's difficult to fix things yourself, but it's costly to pay for the repairs. When any of your systems fail, you not only have to pay to fix it, you have to find someone who can diagnose it first, which also adds to the bill.

You can purchase extended warranties to cover these electrical, technological, and computerized systems. It's important to examine the list of exclusions from your warranty provider carefully. However, these types of extended warranties could save you thousands on repairs.


The nice thing about purchasing an extended warranty from a dealer is that they take care of all of the messy paperwork. Sometimes dealer warranties can be more expensive, but they file the paperwork and the manufacturer pays the dealer directly for services, so you don't have to mess with any payments.

You also have more flexibility when getting your repairs done. You can usually go to any dealership carrying that name brand. Most manufacturers will allow you to use your warranty at places other than where you purchased it, as long as they specialize in the same make you purchased.

This comes in particularly handy if something happens while you're traveling. This is a great option for people who drive a lot, especially for long distances. Families that vacation often or retired couples looking into a mobile lifestyle will benefit greatly from an option like this.


Let's say you decide to sell your vehicle in a couple of years. Maybe you need something bigger to accommodate the newest member of your family. Or you got a promotion and would rather have something more sporty.

The great thing about extended warranties is that you can usually transfer them to the new owner. Ford dealer extended warranties, and other vehicle service contract companies may allow for this. You're not tied to a warranty you're not longer using, and it could result in a smoother sale for you. Make sure your contract allows it before you purchase the warranty, but if you think this may be something you're interested in, it's an option.

Peace of Mind

Peace of mind isn't something you pay for, but it still comes with every extended warranty. Knowing you're covered in the event of an emergency sometimes makes all the difference. It can be nerve-wracking knowing your manufacturer's warranty is going to end, but with an extended warranty, you don't have to worry.

The peace of mind your warranty brings extends to other areas of your life as well. It makes it easy to budget your car expenses, giving you more peace of mind in your budget as well. You don't have to stress about not making a car payment because you have to fix a leak.

There are many great reasons to purchase an extended warranty for your vehicle. When it comes to cutting costs and resting easy, it's an easy decision to make. You expect your car to last a long time, so you should have a warranty to match.

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