A recent J.D. Power study concluded that Vehicle Quality is one of the top of the mind purchase considerations for buyers across all the segments.
While the warranties offered by manufacturer speak a lot about how confident they are about the quality of the car, there is no harm in choosing extended warranty package for a small premium, especially, when the new age cars are becoming more and more complicated. But there are few things, buyer need to be aware of before choosing the policy.
- What is the standard warranty coverage - If the standard warranty offered sufficiently covers your usage and time of ownership, there is no point in looking for extended warranty
- What is the market feedback on quality of car - If a brand is well trusted for its quality & reliability, the upside for extended warranty may be limited.
- When can I buy the policy - While some policies may be available till the time your standard warranty expires, some may only allow it to be purchased upfront. In case you have clarity on the ownership period and usage, you might want to buy it upfront only. Otherwise if offered at later stage, you can leverage
- Who is offering the policy -Extended warranties can be offered by either OEM, or dealers, or in some cases even third parties. While it's most expensive to buy directly from OEM, it would offer the maximum peace of mind, convenience & trust. Third party warranties on the other hand may offer better features
- Understand the coverage - Before signing the contract, understand what is covered and what is not. Some policies may not comprehensively cover the wear and tear and may only cover breakdowns. You really need to understand the differences before opting for one over other
- Check the coverage network - Very important to understand, which all workshops or dealers are authorized. This becomes even more critical for the brands which may not have sufficient geographical coverage
- Is the warranty transferable - In case you want to sell of your vehicle, this feature may allow you to charge a premium
- Hidden Costs - It's also important to clearly ask if there are any hidden costs, sometimes underwriter may have certain clauses which would not cover the complete liability and you may be charged for certain portion of the services
You can refer to Wheelmonk.com for product quality ratings and J.D.Power section for the top reliable brands across segments
Wheelmonk's "My Garage" section to save you standard warranty expiration date and we will remind you well in advance
A key question,lot of consumer typically asks, is how Extended Warranty is different from Insurance. Now, insurance is your cover in case of any accidents or mishaps. It'll not cover your vehicle's normal wear / tear or breakdown. For that, you need a warranty cover. Whereas a Warranty will not cover any accidental damages and can only be claimed for a product fault