Purchasing a factory extended warranty for new autos is typically a very good option for new car owners. Having extended coverage on your new vehicle can save you a lot of hassle later down the road when it comes time for your car to be repaired.
A factory extended warranty is offered by the actual manufacturer or factory itself that made specific components on the new car. Depending on the manufacturer and the factory what a factory extended warranty covers can vary slightly from company to company.
The majority of factory extended warranties offer a bumper to bumper coverage of the car. The bumper to bumper coverage does not include wear and tear items such as tires, spark plugs, windshield wiper blades or even seat belts. Typically a bumper to bumper extended coverage will cover only the mechanical defects of the car.
Extending the warranty is an option for two types of extensions. The first extension is the mileage. Warranties typically expire after a certain number of miles. For example many warranties will cover repairs on a new auto until it has been driven 36,000 or 60,000 miles. Most extended warranties will cover the new vehicle until it has been driven 100,000 or 125,000 miles.
Thus, you can use the option of extending the warranty additional miles. This can be very helpful if you drive a great deal. For example, if you are a commuter and you drive 60 miles to work and then another 60 miles home everyday, you will quickly reach the standard warranty mileage limits. After all in a five day work week that is around 12,000 miles that you are driving your car per month. In just three months time you would already surpass the 36,000 mileage limitations on some warranties.
Another option for factory extended warranty is the number of years that the warranties will cover. Often with factory extended warranty plans the number of years is 3 years or 5 years. In the example of driving the car 60 miles back and forth to work daily the warranty would expire after just three months. If the mileage is reached prior to the number of years, the warranty expires and you lose the remaining days or years of coverage.
Many people that plan on keeping their cars for a long time will use the factory extended warranty to increase the number of years. Some places will do 10 year, 12 years and 15 years. You will be hard pressed to find a company that will go past 15 years. Typically for you to extend the warranty to cover a larger number of years, you have to show that the vehicle is not being driven much. For example, if you purchased the car to run an occasional errand or to attend weekly services it would only get about 200 miles a month on it.
As you can see there are several options available for factory extended warranty plans for you to choose from. You should talk to the dealer that sold you the car or to a auto warranty company to find out the best options for you and the best prices for your factory extended warranty plan.