Why buy an extended warranty valid after the manufacturer’s mechanical warranty expires? To lower costs in case of unexpected breakdowns.
What is an extended warranty?
Some automobile manufacturers offer a comprehensive extended warranty on their vehicles, such as up to five years or 100,000 kilometres. This type of coverage provides consumers with welcome peace of mind.
However, other manufacturers offer a warranty that's relatively limited in duration or kilometres. Is this your situation? You might want to consider getting an extended warranty for your car.
An extended warranty is protection that covers the cost of repairs for breakdowns occurring after the car manufacturer’s mechanical warranty has expired. Coverages vary in duration and kilometres and can include a range of different components.
Nowadays, mechanics and electronics are getting increasingly sophisticated and many vehicle components are controlled by computers. It now takes more than your brother-in-law and a few tools to repair a car. The complexity of components is such that it is now often necessary to have your car repaired at a garage.
With constantly rising costs for parts and labour, a vehicle owner who isn't covered by an extended warranty is exposed to repair costs that can be quite high.
Here are a few examples:*
- Front windshield wiper motor: $423.95
- Front suspension arm: $518.28
- Radiator: $679.02
- Fuel pump: $458.38
- Alternator: $604.91
- Power steering: $722.94
- Axle shaft: $749.42
- Air conditioning condenser: $772.37
- Air conditioning compressor: $1,063.71
- Electronic ignition module: $1,214.29
Advantages of an extended warranty
Whether it's an extended warranty from the manufacturer or from an independent provider like Groupe PPP, there are several advantages to investing in this type of protection for your vehicle: Here are a few:
- It safeguards your budget against unanticipated costly repairs.
- It shields you against the inflation of parts and labour costs.
- You can choose from among a large selection of coverages, depending on your type of use (high or low annual kilometrage).
- It enhances the resale value of your vehicle.
- It gives you peace of mind.
The added cost of the extended warranty varies according to annual kilometres travelled and the chosen coverage length. What's more, certain providers like Groupe PPP offer customers the option of adding a clause that reimburses the cost of the extended warranty at its expiry if you have never had to use it.
How to determine whether you absolutely need an extended warranty?
It all depends on your capacity to deal with risk. If you can afford major repairs without compromising your budget, you can take the risk of not covering your vehicle with an extended warranty.
But remember: even dependable and safe vehicles are liable to break down unexpectedly! Road conditions, temperature fluctuations and calcium, among other things, can spring nasty surprises on vehicles. Follow the manufacturer’s recommended maintenance schedule to help you reduce risks.
Information from Groupe PPP
The prices stated are for information purposes only. They do not represent a specific quote. Prices may increase from year to year or may vary according to vehicle model, geographic region where the repairs are performed, or other factors.