First-Time Buyer: Optional Add-On Protection Plans

Every new car comes with a manufacturer’s warranty. Typically, that warranty is transferable to a new owner. However, it doesn’t last forever. For example, Ford’s limited powertrain warranty lasts five years or 60,000 miles, whichever comes first. With an add-on protection plan — also known as an extended warranty — you can extend the life of your warranty. That means you’re covered under the terms of your warranty for the costs of unexpected repairs! Getting a protection plan gives you peace of mind, especially when you’re purchasing a used car or plan to keep your vehicle past the manufacturer’s warranty expiration.

Specific coverage and limitations will vary between protection plans. A good extended plan will look a lot like a manufacturer’s warranty, covering important aspects of your powertrain and bumper-to-bumper items, such as the air conditioning system and electronic systems.

Often, your local dealership will offer levels of extended warranty coverage. This helps you choose how much you want to spend on your coverage. Having options also helps you make sure you’re getting the right amount of coverage for your specific needs.

You’re not required to purchase an extended warranty protection plan! But, as you can see, such a plan can come in handy. Ideally, this add-on protection could help save you money on the out-of-pocket costs of unexpected repairs.
There are certain situations where an extended warranty will come in handy, such as when you plan to keep a vehicle long past the manufacturer’s warranty expires. An older vehicle will require more repairs as the years go by. If you do a lot of driving and your vehicle has an established record of necessary repairs, you’ll be doing yourself a favor by adding extra protection. Finally, if you’re shopping for a used vehicle whose manufacturer’s warranty has already expired, you can give yourself peace of mind by adding a protection plan. Often, extended warranty plans will come with perks like roadside assistance. However, keep in mind that many extended warranties have deductibles, which is an amount you will pay before coverage starts.