Are Extended Vehicle Protections Plans Necessary?

If you’ve recently bought a brand-new car, chances are it’s still under the original warranty. But these days it’s not uncommon for dealers to try selling you an extended vehicle protection plan, rolling it right into the overall sales price of the vehicle. Such plans generally cover everything from bumper-to-bumper. There are some that even cover those little dings and scratches that invariably seem to happen in parking lots when you’re never around.

Of course, there was once a time when many people thought the manufacturer’s warranty was enough. But these days, cars are so complicated and have so many electronic features that it makes sense – at least in many cases – to select from one of the different extended vehicle protection plans offered. It certainly won’t hurt to look at what kind of coverage is being offered.

What About for Used Vehicles?

The car industry has certainly changed over the years. In the past, used cars were sold “as is” and there was no way to get a warranty unless the seller offered something for a very limited time frame that generally ranged from 30 to 90 days.

These days, however, almost any used car can have an extended warranty plan sold with it. Even cars between 10 and 20 years old can get some kind of extended coverage, though it may become more limited the older a car is and the more mileage it has. Cars are made to last longer so a lot of people keep them longer. But when something goes, it usually costs a lot more than it used to. So, it may be a wise to at least consider purchasing extended coverage.

Weighing the Options

If you have the willpower to religiously set aside extra money to cover something should it go wrong, then perhaps you don’t need an extended service plan. But if you don’t, or covering something unforeseen would ruin your budget, potentially for at least a few months, getting an extended plan may make sense.

Before buying an extended warranty, look at what it covers, then do some research online. Does it cover things that historically go wrong on your particular make and model, then coverage may well be worth purchasing.

Ask if the extended vehicle protection plan is transferrable. If it is, that could be a great selling or trade-in point when you get ready to sell this vehicle and get something different. Of course, this option may only be important if you tend to trade cars every few years or so. If you keep a car longer than that the transferability may not be a selling point.

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