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Should I Get an Extended Auto Warranty with My Car Loan?

purchasing a car at dealership

Not many people like the idea of being held financially responsible for 100% of the damage that could happen to their car. When you’re getting a loan to purchase the car of your dreams, you’ll want that vehicle to be well protected, won’t you? Upon purchasing your car, you’ll probably receive a manufacturer’s warranty with it, but when that manufacturer’s warranty is up, are you ready to foot whatever bills come your way?

When the manufacturer warranties end, many people like to continue with a type of coverage that will assist them with future repairs and issues. That’s why lenders (like Rivermark) often offer people an extended auto warranty that provides protection for their car after the manufacturer warranties end. And you can even combine this payment with your initial car loan to make for a simpler month-to-month payment process. This will not only get you your car in the first place but will protect it for a long time after you have it.

Rivermark Community Credit Union gives auto loan recipients the option of getting an extended auto warranty at our financial institutions. Choosing to get this protection is often cheaper than purchasing at a dealership, where they can up their prices for profit. If you’re unsure if you should purchase this added protection for your car, you may benefit from learning more about what it could offer you. Read on for some information that can help you decide if you should or shouldn’t get an extended auto warranty with your car loan.

What is an extended auto warranty?

An extended auto warranty is an optional type of protection for your vehicle that usually starts after the manufacturer’s warranty expires. It can help cover the cost of certain repairs if your car needs them in the future. At Rivermark Community Credit Union, our extended auto warranty program is called Mechanical Breakdown Protection (MBP). When you have this additional protection, you ensure you have peace of mind when or if your car has issues after your manufacturer’s warranty.

What does it cover?

The specifics of what is covered under this warranty will vary depending on where you purchase it. If you decide to get this protection, make sure the type of services you want are included. When you choose to purchase an extended auto warranty at Rivermark for example, you’ll get more than just assistance with repair costs.

One of the features of MBP is nationwide protection. This feature allows you to have your repairs done at any licensed repair facility in the United States or Canada. So you won’t have to worry about being away from your normal repair shop or even in another country. And when you aren’t sure that your repairs will qualify, you can call our toll-free number to have it authorized. Our trip protection feature will also cover your hotel for up to $75 a night for three nights if your car breaks down over 1,000 miles away from your home. Not too bad, huh?

Our 24-hour roadside assistance is probably the biggest perk of having an extended auto warranty. This feature includes an abundance of resources that will come in handy when you’re in a tight spot. Should your car refuse to start, it will provide you with a jump or tow. If your tire goes flat, you’ll have emergency tire repair to fall back on. You’ll also get fluid and gas delivery, battery assistance, emergency lock-out assistance, and more. Cars usually don’t pick a convenient time to need repairs, but with 24-hour roadside assistance, no time is off-limits.

What cars are eligible?

You may think that your car isn’t eligible for an extended auto warranty, but that’s probably not the case. Both new and used cars can benefit from this type of protection. Most new cars will already come with a manufacturer’s warranty. While having two warranties at the same time may not seem like something to consider, it’s really never too early to protect yourself for when the manufacturer warranty expires.

When you’re buying a used car, you might not actually receive a manufacturer’s warranty, so an extended auto warranty could take its place without any panic on your part. Whether you have a new or used car, protecting yourself from the costs of some repairs may save you a lot of money. You can use this protection for up to 10 years or 150,000 miles, giving you plenty of time to benefit from the investment.

How much does it cost?

There are many factors that go into how much your extended auto warranty will cost. Who you buy the warranty from, the type of car you’re buying, and the year it was made all play a part in the final fee. In general, the cost can range from $350 to over $1,000.

But before you fret over the cost, it’s best to get a quote based specifically on your car’s information. At Rivermark Community Credit Union, we can give you a quote easily. If you decide to get both your initial auto loan and your extended auto warranty with us, we can just add the extended auto warranty cost to your initial loan, making your monthly payments simpler.

Should you get an extended auto warranty with your car loan?

When it comes to making the decision on whether you should buy an extended auto warranty, you should consider your personal driving preferences and behavior. Are you someone who travels a lot in your car or drives it far distances? Are you planning on driving your car often or only occasionally? The more often you’re in the car, the more likely something could go wrong.

But as most car owners know, most accidents and repairs happen randomly, and there’s no real way to determine when or if it will happen to you. If you like to be prepared and protected beforehand, then getting an extended auto warranty would probably be the right decision for you.

And when you plan on getting a car loan for your car, getting an extended auto warranty at the same time really is the best decision. Since you’ll be able to pay both the premium for the warranty and the fee for your loan, you won’t have to worry about making an additional payment in the future. Rivermark Community Credit Union’s fully insured MBP program can be a saving grace for you and your vehicle. Get a quote today.

Have Questions About Auto Loans?

Our auto loan resources page can help you make informed decisions as you prepare to shop for a car or apply for an auto loan. And, as always, you can call Rivermark and speak directly to a lending expert by calling 503.626.6600.

Auto Loan Resources