Are Extended Warranties Worth It?

Are Extended Warranties Worth It? 

Purchasing a new or nearly new car from a dealer, be it direct from the manufacturer’s showroom or any other dealership, will inevitably include a discussion about extended warranties. But are they worth it? While some people will always consider that a firm “no” is always the correct answer, if you delve a little deeper into the subject, then one thing becomes very clear: all extended warranties are not made equal. 

That’s why there’s no definitive answer to the question. Instead, it’s necessary to consider what such a warranty is offering.  

Read on to understand more about the pros and cons of extended car warranties. 

Unraveling the Car Warranty Minefield  

  • What is an extended car warranty? 
  • What are the different types of extended car warranty? 

What is an extended car warranty

In a nutshell, this warranty is a type of insurance policy that covers various faulty components, should they occur. They can be provided by both the manufacturer of the vehicle or through an independent warranty supplier. 

What are the different types of extended car warranty? 

You’ll generally find one of three different kinds: 

  • Manufacturer’s extended warranty: This can be purchased from the manufacturer (e.g. Audi) when you buy a new car or before the original warranty expires. 
  • Franchised dealership warranty: Such as a car supermarket or private dealership 
  • Independent extended warranty: As the name suggests, this is one offered by an independent insurance provider.  

Every extended warranty is different and can provide varying levels of cover. Exactly what these are will be specified in the small print. However, most generally include the major components, such as: 

  • The engine 
  • The gearbox 
  • The suspension and steering 
  • The electrics 

In general, an extended warranty will cover the repair or replacement for any unexpected failure of these. However, there is often an option to further cover against wear and tear. 

Things to Know About Extended Car Warranties? 

  • Three key car warranty terms 
  • Should I buy a car warranty? 

Three key car warranty terms 

While all car warranties differ, there are three key terminologies used that you should understand. These are:  

  • Consequential failure 
  • Betterment 
  • Wear and tear 

Consequential failure refers to the failure of a part that’s covered by the policy causing damage to a part that isn’t. Check the wording of the policy to see whether, if this happens, you’ll be expected to pay for the uncovered element of the repair.  

Betterment means that if the fault requires a new part to be fitted, then the policy might state that you’re liable for the cost if that part is better than the original. In other words, it has made your car better/more valuable. This could, potentially, end up costing you a substantial amount. If you see the wording in a policy, then it’s vital to clarify exactly what it means before committing to purchase.  

Wear and tear is exactly as it sounds—it covers the cost of some of the elements of the car that can wear out over time. You won’t find a policy that covers common replaceable parts, such as brake pads and batteries, but others that could fail over longer periods may well be included. 

Should I buy a car warranty? 

Some extended warranties can be worth it for the peace of mind they bring. However, they can only be purchased for cars up to a specified age and mileage. There may also be a cap on the amount covered for a single item.   

If you’re considering an extended warranty, you must satisfy yourself as to exactly what is and what isn’t included. You’ll also be tied to many restrictions, such as sticking to the advised service schedule, total mileage, and even where any work can be carried out.  

Whether you decide to take out an extended warranty or not, it’s no replacement for good car maintenance. That alone is the one thing that will ensure your car runs at the optimal level today, tomorrow, and far into the future. 

Servicing is Key: With Autobahn of Boca Your Car is in Safe Hands 

Whether your vehicle is under warranty or not, the key to trouble-free motoring is the correct service schedule. At Autobahn of Boca, our marque-trained engineers are experts in caring for the most luxurious cars on the roads today. From BMW to Porsche, Mercedes, Audi, and VW, our maintenance and repair service is designed to keep your vehicle in tip-top condition and ensure that it remains exactly where it should be—on the road. 

Don’t settle for anything less than the best. Find out more at and call us today to discuss any in or out-of-warranty repair work or servicing needs.

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Autobahn Auto Center| (561) 220-5377 2540 NW 2nd Ave, Boca Raton, FL 33431

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