The European auto repair specialists at Starko Auto Services field a wide variety of questions from customers who travel as far away as Bel Air and Simi Valley to visit our auto shop. From customers who are thinking about buying a new Porsche to customers who contemplate purchasing a pre-owned Volkswagen, we answer one question more than any other question posed to our experienced German vehicle repair technicians.
Do I need an extended warranty?
What is an Extended Warranty?
An extended warranty represents a type of auto repair insurance you purchase after the expiration of the manufacturer issued bumper-to-bumper original warranty. Extended warranties typically cover the costs of significant damage and component breakdowns. If our customers decide to purchase an extended warranty, we recommend they purchase the warranty before the original manufacturer warranty concludes. Extended warranties cost less before the expiration of a manufacturer warranty than after a manufacturer warranty expires.
How Long Do You Plan to Keep the Car?
The first question to ask is how long do you plan to keep the car. It is the same question a Finance and Insurance representative at an auto dealership will ask you. If you plan to keep the car for more than three years, then an extended warranty comes into play. Otherwise, most manufacturer warranties cover at least three years of vehicle ownership.
Here are some other questions to answer for an extended warranty:
What is Covered?
We remind the valued customers who turn to Starko Auto Services for European auto repairs that extended warranties are not the safety net that ensure long lasting vehicle durability. In fact, many common wear and tear parts are not covered under extended warranty policies. You have to know exactly what an extended warranty covers. Moreover, with many dealers offering tiered extended warranties at different price points, you have to know what each tier of an extended warranty covers.
Beware of Third Party Extended Warranties
Many auto dealerships sell third-party warranties from companies that have less than stellar reputations. You want to avoid dealers who offer third party extended warranties and stick with a dealer warranty backed by the dealer’s vehicle manufacturer. You can use a manufacturer supported extended warranty at any dealership connected to the automaker. Third party extended warranties are valid only at the dealership that sold you the warranty.
Consider Your Repair History
What auto repair issues have you experienced most often? Have the other vehicles you owned had problems that a proposed extended warranty covers? For example, if you have experienced numerous flat tires, does the extended warranty under consideration include a road hazard tire warranty? Consider the driving conditions you most frequently drive in, such as commuting to and from work in stop and go traffic on a freeway that winds through the San Fernando Valley. If that is the case, you should consider an extended warranty that includes brake repair coverage.
Peace of Mind Versus cost
The Finance and Insurance representative of an auto dealership will probably promote the “peace of mind” an extended warranty brings to the table. However, how much are you willing to pay for a peace of mind? According to a J.D. Power study recently released, vehicle dependability ratings have steadily increased since 2013. In 2016, overall vehicle dependability ratings climbed to the highest level since J.D Powers first published the study in 1998. Financial expert, Dave Ramsey, recommends that consumers follow the Nike slogan and “Just say no” to extended warranties. Instead, Ramsey encourages auto consumers to save enough money to cover about 50% of what you would pay for a comprehensive extended warranty. You use the money saved to finance any repairs needed for your German vehicle
When you need experienced European auto repair, turn to the leading German auto repair specialists in San Fernando Valley and neighboring communities such as Hollywood and Thousand Oaks, California. Schedule you free European auto repair estimate today at Starko Auto Services.