What’s the Difference between a Warranty and Extended Service Plan?
When you purchase a new vehicle, it comes with a manufacturer’s warranty, but the dealer will usually also offer you an extended service plan. Many people are uncertain how the two differ. Should you get that extended vehicle protection plan? How’s it different from the warranty? Here’s what you need to know.
What They Cost
The warranty on your vehicle is built into the price of the car. An extended service plan will always come at an additional price. The exact cost of the extended plan will vary depending on which plan you decide to purchase (there are usually at least two options), and you can often get a better deal on the plans if you’re willing to do some negotiating with the dealer.
Who Covers It
Your vehicle’s warranty is provided and covered by the manufacturer. It is the manufacturer’s way of standing beside their product and guaranteeing that there will be no major issues with the vehicle within a certain time period. An extended service plan is typically provided and backed by the dealership or the company that you purchase the plan from.
What It Includes
The manufacturer’s warranty usually has a very narrow scope of what it will cover. This typically includes major malfunctions with the vehicle’s power train and other primary functions. It may also include a more limited warranty covering any major issues on the vehicle, like door locks or windows malfunctioning.
An extended service plan will cover a lot more in relation to your vehicle’s functionality. Smaller parts of the vehicle not included in the warranty will often be included in a service plan. This means that if anything goes wrong with your car (barring damage inflicted to the vehicle) within the service plan’s period, the dealership will repair it free of charge.
How Long It Lasts
Most manufacturers’ warranties only last a handful of years, or up to a certain number of miles (whichever comes first). Different manufacturers will offer different warranties on the vehicle, so this may be worth researching if you’re in the market for a car. Often, there are two warranties included on your vehicle: a power train warranty and a bumper-to-bumper warranty. These have different time and mileage limitations on them.
An extended vehicle protection package does just what the name implies; it extends the protections on your vehicle, not only in the scope of what is covered, as mentioned above, but also in how long those protections last. So, if you’re going to be putting quite a few miles on your vehicle in a short amount of time, it’s usually worth the extra cost of getting a protection plan.
A vehicle is a major purchase, and it’s natural to want to limit the amount of money coming out of your pocket with such a large expense. But when you’re spending that much money on something, don’t you want to ensure that your investment is protected? When you consider all of the possible issues that could arise with your vehicle outside of the manufacturer’s warranty, it’s usually more than worth the cost of purchasing extended vehicle protection programs for your new car. Give the professionals at Freedom Warranty a call today to discuss your options.
