First-Time Buyer: Optional Add-On Protection Plans
As a first-time buyer, you probably have questions about add-on protection plans. Do you even need one? And what do they even do? We’re here to help you figure it out.
Key Takeaways
- After a vehicle’s manufacturer’s warranty expires, you can add a protection plan to help you stay covered.
- A protection plan or extended warranty can cover all the same things as your manufacturer's warranty. Or you can choose a less all-encompassing plan to save money on the cost of an extended warranty!
- While you don’t strictly need a plan, there are times when you should, such as when you’re driving a high-mileage vehicle or purchasing a used car of unknown origin.
- Here at LaFayette, we can help you choose the amount of coverage you need!
What is an optional add-on protection plan?
Every new car comes with a manufacturer’s warranty. Typically, that warranty is transferable to a new owner. However, it doesn’t last forever. For example, Ford’s limited powertrain warranty lasts five years or 60,000 miles, whichever comes first. With an add-on protection plan — also known as an extended warranty — you can extend the life of your warranty. That means you’re covered under the terms of your warranty for the costs of unexpected repairs! Getting a protection plan gives you peace of mind, especially when you’re purchasing a used car or plan to keep your vehicle past the manufacturer’s warranty expiration.
What can an extended warranty plan offer?
Specific coverage and limitations will vary between protection plans. A good extended plan will look a lot like a manufacturer’s warranty, covering important aspects of your powertrain and bumper-to-bumper items, such as the air conditioning system and electronic systems.
Often, your local dealership will offer levels of extended warranty coverage. This helps you choose how much you want to spend on your coverage. Having options also helps you make sure you’re getting the right amount of coverage for your specific needs.
Do I need an add-on protection plan?
You’re not required to purchase an extended warranty protection plan! But, as you can see, such a plan can come in handy. Ideally, this add-on protection could help save you money on the out-of-pocket costs of unexpected repairs.
There are certain situations where an extended warranty will come in handy, such as when you plan to keep a vehicle long past the manufacturer’s warranty expires. An older vehicle will require more repairs as the years go by. If you do a lot of driving and your vehicle has an established record of necessary repairs, you’ll be doing yourself a favor by adding extra protection. Finally, if you’re shopping for a used vehicle whose manufacturer’s warranty has already expired, you can give yourself peace of mind by adding a protection plan. Often, extended warranty plans will come with perks like roadside assistance. However, keep in mind that many extended warranties have deductibles, which is an amount you will pay before coverage starts.
How do I buy an extended protection plan?
Buying an extended warranty is as easy as using one. A manufacturer’s extended warranty is available through your local dealership. If something goes wrong with your vehicle, you simply head to the dealership service department to have it fixed. If the problem is covered by your extended warranty, then you can drive home without having to spend anything extra!