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Buying Guide - Do I Really Need an Extended Auto Warranty?

Buying Guide - Do I Really Need an Extended Auto Warranty?

Snapshot: Most of the manufacturers offer you a warranty of one or two year and in most cases, offer you an extended warranty plan. While we would recommend the extended warranty in most cases, we still take you through the pros and cons and also weigh down the price against your needs.

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For most people, the duration of warranty a manufacturer provides on the product is an indication of how confident the manufacturer is about that car. Having a warranty cover gives you a great deal of satisfaction just in case something goes wrong. It doesn’t hurt to pay some extra bucks for the peace of mind. This is one of the many reasons we recommend opting in for extended warranties. The extended warranty can be added for a reasonable price and that could be worth anything from just peace of mind to a huge engine repair you might need. Most of the manufacturers offer you a warranty of one or two years and in most cases, offer you an extended warranty plan. While we would recommend the extended warranty in most cases, we still take you through the pros and cons and also weigh the price against your needs.

With the advancement of technology, the reliability of modern day vehicles has gone up considerably. But still, when you encounter problems, the costs aren’t low. In fact, the costs involved are much higher as compared to what they used to be in the past. Even repairs that seemed small in the past add up to a huge bill. The extended warranty can safeguard you against many of these huge expenses. Here are some of the factors to keep in mind.


Traditionally, Toyotas have been considered most reliable world over and were therefore due to that reason were preferred by more number of people as compared to other brands. Now by saying this, we aren’t implying that other brands are bad options and neither are we suggesting that all cars from Toyota are great options. In fact, no matter what the brand has been like in the past, most modern cars are very reliable. But still, reliability varies from brand to brand and model to model. You need to research about the model you are picking. If it is known to cause some issues, an extended warranty might be a good idea.

What is the standard warranty?

While most of the models come with a warranty of a year or two, there are some manufacturers who provide you warranty period of up to three years and even more. The longer this duration is, the better off you are. Many people tend to replace their cars very frequently. If you are one such individual, you might not need to opt for the extended warranty as you are not going to keep the vehicle that long. If you are planning to keep it for more than three years, it would be a better idea to get the extended warranty cover.

Also, while selling the car, you would be able to squeeze a better deal, since cars that are still under warranty cover tend to be popular among people looking for used cars and they see them as relatively less risky.

Who backs the warranty?

This is something you should make very clear. Until now we have been talking about the warranties considering they are offered by the manufacturer. There are times when the dealer could also offer a warranty. Warranty offered by manufacturer score highly and is trustworthy than warranties offered by dealers.

When to buy?

There is a limit on when you can get the extended warranty. Some manufacturers allow you to opt for the warranty package at the time of purchase only. Some might allow you to choose until your standard warranty ends. Don’t wait until later as you might miss the deadline.

Check what is covered

​Be thorough in your research when you are getting an extended warranty package. You are paying for it; make sure you don’t put your money into something you don’t know much about. Enquire as much as details you can, read the documents so that there isn’t any disappointment later. Some policies might cover specific service jobs and if you don’t know that, you might have issues later. Also, check if the policy would allow you to get the service anywhere in the country or at the specific service centre. The latter would be very inconvenient if you are away from your place travelling.

Any other factor I should consider?

Mechanical trouble within first 50,000-80,000km is unlikely if you have been keeping your car well, having it serviced and are driving carefully. However, electrical systems are less predictable in that sense, so if your usage is less and extended warranty does not cover electrical systems, it does not make much sense to go with an extended warranty since mechanically most engines are very robust these days and if nothing has gone wrong at the start, it's unlikely that anything will so if the extended warranty is expensive, you may want to avoid it. Likewise in case of a diesel car which is expected to have higher usage, it makes sense to have extended warranty in any case. 

Read - 10 easy steps to replace a flat tyre! 

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