ARTICLE: Extended Warranties. Yes or No?
Team-BHP believes that warranties are a true expression of a manufacturer’s confidence in its car. Why does Fiat India only offer a one-year standard warranty? Why do Mercedes India and Skoda India not offer any extended warranty plans at all? It’s probably not a coincidence that their cars are the most expensive to service and maintain.
Standard warranties range from one to two years in India, though most cars now sold also have extended warranty plans available for a price. Are these extended warranties really worthwhile? You may be surprised, but they are. Team-BHP highly recommends you opt for extended warranty coverage.
The fact is that no matter how reliable modern cars are, their components are still expensive to replace. Unlike older model cars, it is seldom possible to repair or refurbish a broken part; replacement is generally the only option. It is not uncommon for electrical and mechanical parts to fail unexpectedly and even the pinnacle of reliability, Honda, has had fuel pump problems (worth Rs.20 000 or more) with the new Honda City and Accord. Air-conditioner compressors can cost over Rs.40 000 and defective engines and transmissions are even more expensive.
For only a couple of thousand rupees – between 0.5% - 2% of the purchase price of your car – you can buy the peace of the mind associated with an extended warranty that covers your car for up to twice the length of the standard warranty. An extended warranty is an insurance policy for your vehicle and a safeguard against expensive and unforeseen repairs.
Points to consider:
• When should you buy the extended warranty? We suggest starting the extended coverage with the delivery of your car. Don’t wait until later – some plans have restrictions on renewal or you may just forget.
• Is the standard coverage enough? If the standard warranty is for two years or 50 000 km and you plan to keep your car for two or three years and 20 – 30 000 km, then an extended warranty makes little sense. However, if you plan to keep your car for long after the standard warranty then an extended warranty is worth considering.
• What’s the reliability record of the model you’re purchasing?
• Who backs the warranty you’re considering? You may be buying a manufacturer’s extended warranty or an aftermarket extended warranty offered by your dealer. Knowing who underwrites your policy can help you understand the value of the warranty you’re considering: manufacturer-backed warranties score very highly when it comes to convenience and trust. Some dealers offer only an aftermarket warranty; if they do not initially offer a manufacturer warranty you should specifically for one.
• Is the warranty transferable? Some extended warranties end when you sell your car. A warranty that lets you transfer it to a new owner is an excellent selling point for prospective buyers.
• Can repairs be performed anywhere? Some contracts state that repairs must be performed at the dealership from which the warranty was purchased; this can be very inconvenient. It’s best to opt for a warranty that gives you at least a few service locations to choose from. You’ll appreciate the flexibility when your car needs work while on a road trip far from home.
• What exactly is covered? Know what’s covered – and not covered – with the extended warranty you’re considering. Make sure to check that the service contract covers breakdown as well as wear and tear. Before committing to a warranty, take time to explore the coverage. The differences between two plans might seem slight, but they can prove crucial.
Team-BHP feels that the relatively small cost of purchasing an extended warranty will save you money in the long run. Say “yes” to an extended warranty.
i did get extended warranty for my palio 1.6 from the tata-fiat dealer here in cochin-2 year extended warranty for around 4800 bucks.i did not accept it though.
F50.. dude.. I got a 2 year extended warranty on my Octy..
Whose been feeding you that??
Kinda shocking that they don't...
extended warranty makes sense if you plan to keep the car for more than the standard warranty and gives you piece of mind,,
i have opted for the extended warranty on both my indica and the zen
the indica is warrantied for 3 years while the zen for 4 years,,
Does Honda offer extended warranties on Civic? If so the cost?
guys nice topic.ill give you some interesting info here,
the only company in india to give you waranty on spares -hyundai.that too for 6mnths or 10000 kms .and for every car from hyundai you got an option for extended waranty for the 3rd and 4rth year or 80000 kms .and as many of you know the elantra and sonata comes with 4 yrs 80000 kms standard waranty. -the most extensive waranty policy in india.
hey guys ,
[SIZE=2]one more point i missed out .even before thinking of buying a product think of the standard waranty provided.that gives an idea of the confidence of the company in their product.like the ford giving only one year waranty for the fiesta when hyundai gives 2 yrs unlimited kms waranty for verna.elantra is comming with 4 yrs 80000 kms waranty as standard when skoda has only one year.think of elantra being provided in the us with a 10 yrs waranty.no wonder its the best seller in the entry level midsize car in the us along with the sonata[/SIZE]
A question to all those in favour of extended warranty. Do all of you have it and have you bothered to read the fine print at all. Please do not go by the Kms offered since 99% of you guys will never do that kind of kms. I have 4 relatively new cars in the house(Hyundai) one of whose original 2 year warranty just expired.
I have not applied for extended warranty for any of my 4 cars as In My Personal Opinion the parts that are likely to fail/need replacement after 3-4 years are not covered. Just felt I should share this info with you guys.
The only point I am making is read the fine print before signing up as it is your money involved.
absolutly,i agree i have been through tata extended warranty its more like a insurance,
you have to sit and prove that you are not responsible for the major parts about to be replaced!!!that too to the guys supporting the warranty,that right a third party,please do visit your neighbourhood tata dealership for more details.
iam being serious when i bought my dicor a top man in prerana asked me sinc ehe knows what is my nature of buisness asked me to refrain explaining what i have suggested above,
the coverage of extended warranty is supported by tata and does not carry the very same meaning the word warranty carries for the first 20 months the extended warranty claims are cleared by a third party insurance company if if you want i will pm you the concerned party number and reffering me as a friend(under conditions of anonimity)he will explain the pro's and cons involved which will quell your doubts..
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