You just bought your dream car, and now you are tasked with protecting it. Purchasing an extended service contract (also known as an extended warranty) and gap insurance will help reduce the cost of keeping your vehicle on the road for a long time, or cover what you owe in loan payments if your car is stolen or unsalvageable.
Protection Against Uncovered Repair Costs
Some repairs are not covered by your factory warranty. An extended warranty will save you from paying out of pocket for repairs that are not covered by the manufacturer. For instance, if your extended warranty offers bumper-to-bumper coverage, you receive assistance in paying for the replacement of wear and tear components, such as brake pads, annual oil and filter changes, tire rotation, and even key fobs.
Peace of Mind for an Extended Period
Most manufacturer warranties only cover a few years of powertrain repairs, and even less for other components. An extended warranty offers longer-lasting protection and saves you from costly repairs that happen a few years after the manufacturer’s warranty expires. According to a ConsumerAffairs survey, 36.5% of car owners who responded couldn’t cover an unexpected vehicle repair cost of $1000 or more. Inflation is set to increase repair costs, but you can enjoy peace of mind with an extended warranty.
Rental Car Coverage and Roadside Assistance
Extended warranties often come with perks such as rental car coverage, which provides a rental car reimbursement while your vehicle is being repaired for a covered issue. Additionally, if you find yourself stranded in the middle of the road, your benefits may rescue you if it has 24/7 roadside assistance and trip interruption coverage. This may also include a hotel room if your home is far away from the site where your vehicle experienced the breakdown.
Improved Resale Value
If you think the time is right to sell your car, you can get a much better deal with an extended warranty. Buyers are more attracted to vehicles with extended warranties since the coverage is completely transferable. According to the Exclusive National Club, cars with extended coverage have an 8% higher resale value than identical models without coverage. Additionally, negotiations will be smooth sailing when you can convince the buyer that the vehicle is reliable and protected against unexpected repairs.
Coverage in Case of a Total Loss
You may owe more in auto loans than your car is worth, especially due to depreciation. In the unfortunate event your car is totaled or stolen, your insurance plan only pays off a portion of the loan equal to your vehicle’s current value. A guaranteed asset protection (GAP) insurance covers the difference between what you owe on your car loan and what your insurance pays. In short, your heartbreaking loss will not be accompanied by a large financial burden.
Protect your dream car before you buy it. Visit us at Graff Chrysler Dodge Jeep Ram Rockford in Rockford, MI to explore new models and ask our team about the best warranty and insurance plans.
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