Disclosure: This content was produced by an independent editorial party for the purposes of educating our customers, and is not influenced by the other business operations of CARCHEX. An extended car warranty is protection from the vehicle manufacturer against mechanical breakdowns. This term is sometimes incorrectly used to describe coverage from third-party providers, which offer similar protection plans called vehicle service contracts. CARCHEX is a vehicle service contract provider.
If you’re thinking of buying a vehicle service contract on a new car, you may be wondering whether it’s a good investment to make. The answer depends on the kind of coverage you’re looking for. The vehicle service contract experts at CARCHEX will walk you through what’s covered by factory warranties and vehicle service contracts, how to find coverage that’s right for you, and when’s the best time to buy.
To speak to one of our experts and get a free quote, call 866-261-3457 or fill out our online form.
What Is a Vehicle Service Contract?
A vehicle service contract covers the costs of repairs to your car after the manufacturer’s warranty expires. Typically, factory warranties on new cars last a few years, then the owner assumes the risk if something goes wrong down the road. A vehicle service contract protects you from that risk.
Why Do I Need Coverage on a New Car?
If your car is new and you have coverage from the manufacturer, do you need a vehicle service contract? Here are some reasons why buying a vehicle service contract for your new car can help you protect your car and your wallet—and give you peace of mind.
Consumers Can Tailor Vehicle Protection Plans to Fit Specific Needs
Auto manufacturers generally sell off-the-rack warranty plans at preset prices. If you buy a vehicle service contract from a third-party company, you can tailor that coverage to protect you where the factory warranty does not. We recommend checking sources like Consumer Reports, J.D. Power, and RepairPal to determine the car’s reliability, paying attention to common repairs drivers encounter and making sure your contract covers those.
Vehicle protection plan prices can often be customized to your budget, so the payments are more manageable than a costly repair would be.
A Vehicle Service Contract Covers Your New Car’s Technology
With today’s cars including more and more high-tech features, the electronics and computer systems have become more complex. When a technology component fails, it can be very expensive to find the problem and get it repaired. Protecting your vehicle’s technological systems is one reason drivers choose to buy a vehicle service contract.
If You’re Protected Longer, You Can Drive Longer
You just bought a new car and you want to get the most out of it. Many factory warranties last just three years or 36,000 miles (whichever comes first). With extended protection, your new car can continue to function its best for as long as you need.
More Repair Choice with Third-Party Plans
Manufacturer’s warranties on new cars, and even extended warranties sold by car dealerships, often require you to take your car to specific dealerships when you need a repair. This means that you can’t stay with the mechanic you know and trust—it’s a dealership or nothing. Third-party companies let you choose which repair facility services your vehicle.
When Should I Buy a Vehicle Service Contract on a New Car?
When you should buy a vehicle protection plan for a new car depends on who you want to provide the coverage. Most automakers require you to buy a vehicle service contract before the factory warranty runs out. That gives you the first few years of ownership to decide.
Third-party providers like CARCHEX allow you to buy your vehicle protection plan whenever you would like, because we cover new, used, and certified pre-owned vehicles, including those with over 100,000 miles.
We recommend buying a vehicle service contract right before your factory warranty expires, so you get the best price and there isn’t a gap in your coverage.
When Does My New Car Warranty Expire?
You’ll find that most factory warranty terms vary per make, model, and year. Most manufacturers provide an exclusionary warranty and powertrain warranty:
- An exclusionary covers all components of your car’s major systems minus a short list of exclusions.
- A powertrain warranty protects basic components such as the transmission, engine, axles, and drive shafts.
The chart below gives a general overview of what auto manufacturers offer for new vehicles:
| Manufacturer | Basic Warranty | Powertrain Warranty |
|---|---|---|
| Buick | 3 years / 36,000 miles | 5 years / 60,000 miles |
| Chevrolet | 3 years / 36,000 miles | 5 years / 60,000 miles |
| GMC | 3 years / 36,000 miles | 5 years / 60,000 miles |
| Dodge | 3 years / 36,000 miles | 5 years / 60,000 miles |
| Ford | 3 years / 36,000 miles | 5 years / 60,000 miles |
| Honda | 3 years / 36,000 miles | 5 years / 60,000 miles |
| Nissan | 3 years / 36,000 miles | 5 years / 60,000 miles |
| Subaru | 3 years / 36,000 miles | 5 years / 60,000 miles |
| Toyota | 3 years / 36,000 miles | 5 years / 60,000 miles |
| Hyundai | 5 years / 60,000 miles | 10 years / 100,000 miles |
| Kia | 5 years / 60,000 miles | 10 years / 100,000 miles |
| Infiniti | 4 years / 60,000 miles | 6 years / 70,000 miles |
| Volkswagen | 4 years / 50,000 miles | 5 years / 60,000 miles |
| Volvo | 4 years / 50,000 miles | 4 years / 50,000 miles |
| Mazda | 3 years / 36,000 miles | 5 years / 60,000 miles |
| Chrysler | 3 years / 36,000 miles | 5 years / 60,000 miles |
| Mitsubishi | 5 years / 60,000 miles | 10 years / 100,000 miles |
| BMW | 4 years / 50,000 miles | 4 years / 50,000 miles |
| Fiat | 4 years / 50,000 miles | 4 years / 50,000 miles |
| Mercedes-Benz | 4 years / 50,000 miles | 4 years / 50,000 miles |
| Jeep | 3 years / 36,000 miles | 5 years / 60,000 miles |
| Audi | 4 years / 50,000 miles | 4 years / 50,000 miles |
Note that these warranties don’t cover normal wear and tear—they only cover repair costs (parts and labor) for faulty material or workmanship. Deciding to continue this level of protection when you buy a new car can save you money in the long run.
Benefits of CARCHEX Vehicle Service Contracts
There are more than just a few reasons to choose CARCHEX for your vehicle protection plans. Our customers enjoy a long list of benefits that come with our Vehicle Protection Plans:
- Low monthly payments—Our payment plans can fit comfortably into any budget, and we require no down payment to get started.
- Claims paid directly to the repair shop—We will never make you foot the repair bill covered by your CARCHEX plan and then wait to be reimbursed. CARCHEX pays the repair facility directly, so you don’t have to.
- Your choice of repair shop—We partner with more than 30,000 repair shops across the U.S., so whether you prefer a car dealer, a national chain like Pep Boys or Firestone, or the local mechanic down the street, you’re sure to find one you know and trust.
- 30-day money-back guarantee—We stand by our products and services. If you’re not completely satisfied with your coverage, you can cancel your plan and get your money back.
- Added benefits—We include trip interruption protection, rental car reimbursement options, towing, and roadside assistance with our coverage plans.
- Low deductibles—When a breakdown arises, you will pay as low as $0 to have your car repaired.
- Partnerships and endorsements—We have partnerships with several industry-leading companies and organizations, such as Kelly Blue Book, CARFAX, RepairPal, and the Vehicle Protection Association, that endorse our services.
CARCHEX Vehicle Protection Plan Options
CARCHEX offers five plans that are affordable and can be tailored to the needs of individual customers. New and used cars—even vehicles with over 100,000 miles—can be protected from unexpected repairs with our plans, which range from exclusionary to powertrain coverage. The table below breaks down these plans:
| Plan | Description | Coverage Length |
|---|---|---|
| Titanium | This is the highest level of coverage, which protect all components of your vehicle, minus a short list of exclusions. | Up to 10 Years |
| Platinum | This is the second-highest coverage available, with an extensive list of components covered for all of your vehicle’s major systems. | Up to 10 Years |
| Gold | This plan provides extensive coverage for the major systems of your vehicle. Its terms are flexible, so it’s a good option for vehicles with over 60,000 miles. | Up to 10 Years |
| Silver | This plan covers the essential elements of your major systems. Just like the Gold plan, it is best for high-mileage vehicles. | Up to 7 Years |
| Bronze | This is the lowest level of coverage, also known as a powertrain warranty. Only the most expensive components, like the engine and transmission, are protected. | Up to 6 Years |
Protect Your New Investment with CARCHEX
Our customer service is backed by an A+ rating and accreditation from the Better Business Bureau. You can expect our team to take a consultative approach and answer all of your questions. Talk to our specialists today to learn about buying a vehicle service contract on a new car. You can get a free quote instantly by calling us at 866-261-3457.
Sources:
JD Power: http://www.jdpower.com/cars/articles/tips-advice/pros-and-cons-buying-extended-warranty-car
Better Business Bureau: bbb.org/greater-maryland/business-reviews/extended-warranty-contract-service-companies/carchex-in-hunt-valley-md-23015869