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What is an extended warranty?
Why does having an extended warranty matter?
Is an extended warranty the same thing as car insurance?
What should I consider before getting an extended warranty?
Does Spero Financial offer extended warranties?
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You may have seen in the news recently that several major auto manufacturers have had recall notices go out to consumers. This isn’t isolated to one brand – it’s an industry-wide issue that can seriously impact vehicle owners.
While major recalls are almost always covered by the manufacturer, not everything that goes wrong with a car will be. Things break, and it’s your responsibility as a car owner to get them fixed to keep your vehicle in safe operating condition.
To make these major repairs less stressful when they arise, consider getting an extended warranty (sometimes called mechanical repair coverage).
What is an extended warranty?
An extended warranty is exactly what it sounds like – it’s a warranty that goes beyond the standard warranty offered by a car manufacturer. Extended warranties may last longer than the standard warranty does and will often cover complex repairs that regular warranties won’t.
Plus, extended warranties can be added to used cars, which are often purchased outside the time frame of the manufacturer’s warranty. That means your vehicle can be protected even if you didn’t purchase it brand-new.
Why does having an extended warranty matter?
Auto repairs can be very expensive depending on the issue being addressed. An extended warranty helps drivers cover those expenses without completely breaking the bank.
Is an extended warranty the same thing as car insurance?
No, an extended warranty isn’t an insurance policy, though they have some similarities.
They both help you handle unexpected expenses that arise with your vehicle, but while a warranty typically handles repairs when things break on their own, auto insurance typically covers damage that occurs through incidents like severe weather and accidents.
Car insurance is required by law to drive a vehicle; an extended warranty is not.
What should I consider before getting an extended warranty?
Before agreeing to an extended warranty, you should compare its coverage with the manufacturer’s warranty. If it doesn’t cover much beyond the warranty that comes with the car, it may not be the best use of your money.
You should also consider the monthly cost of the extended warranty itself. Will you be able to comfortably pay for it each month? If not, you may want to skip it for the time being.
Lastly, you should make sure that the provider is reputable. There are tons of scams out there, so you should thoroughly research any companies offering you an extended warranty before giving them your personal information.
Does Spero Financial offer extended warranties?
Yes, and even better: you don’t have to be a Spero member to get one.
While coverage may vary depending on the specific plan you choose, most agreements include protection for engine components, transmission systems, drive axle assemblies, electrical systems, AC and heating systems, fuel delivery, steering and suspension components, and brake systems (excluding routine wear items like pads). Plus, there are added benefits like transferable coverage if you sell the vehicle and 24-hour roadside assistance.
If you have a Spero auto loan (purchase or refinance), your extended warranty payment can be included in your monthly loan payment so you don’t have to keep up with multiple bills.
Click here to open an extended warranty with Spero Financial today.
This material is for educational purposes only and is not intended to provide specific advice or recommendations for any individual.
