Reader’s Question:

I have just purchased my new car here in Maryland. My dad says that it is better if I get extended warranty, but I disagree because I already have the original manufacturer’s warranty. What exactly is the difference between the two?

Mary

Baltimore, MD

As with a lot of other products, vehicles initially come with a warranty that is given by the manufacturer to protect the consumer within a period of time or a limited amount of miles. Others call this the basic factory warranty.

The majority of vehicle manufacturers here in this country provide warranties that take effect to as long as thirty-six months, if this comes first, or 36,000 miles, if this comes first. In addition, most manufacturers here in the country offer a warranty on all legally required emission’s components for a matter of five years or 50,000 miles and a warranty for corrosion that would not expire until the sixth year or the 100,000th mile.

What the original manufacturer’s warranty does is it serves as a sort of assurance that the newly purchased vehicle is not defective.

Now, what are you going to do beyond the allotted amount of time or amount of distance?

Beyond the basic factory warranty’s allotted amount of time or amount of distance, you are going to be the sole person responsible for any repairs or malfunction that your vehicle would have.

This is where extended warranty comes in.

Extended warranty protects you from any repairs that you would have to undergo during the time that the original manufacturer’s warranty has already expired. This is the difference between the original manufacturer’s warranty and extended warranty.

Different companies offer different types of extended warranty coverages. It is up to you to just check out the ones there in Maryland that would best satisfy your needs.

And your dad has some point. Even though you are still covered by your basic factory warranty, it is better to avail of extended warranty right now because, like life insurance, extended warranty becomes more expensive as the vehicle becomes older and gathers more mileage.

Tags: auto warranty