3 things you don't know about extended vehicle warranties

When you buy a used vehicle from a dealer, chances are you'll be offered an extended warranty. This kind of extra protection can be quite expensive, and can quickly add thousands of dollars to your purchase price. It's perfectly legitimate to ask yourself whether it's really worth it.

Generally speaking, the appropriateness of an extended warranty depends on its duration, the items it includes, the vehicle's reliability, and the cost of repairing or replacing the various parts compared with the price of the protection. Before deciding, do a little research on the web - road tests, owner forums, independent studies, Automobile Protection Association (APA) reliability reports, etc. - and consult the history report.

Of course, you can customize the coverage to suit your needs. Companies that offer extended warranties will allow their customers to choose from a list of services they wish to include, to establish coverage that suits their needs exactly.Of course, even the most comprehensive extended warranties will exclude certain items, not to mention the fact that normal wear and tear on parts such as brakes and tires is very rarely covered.

Now, here are three things you may not have known about extended vehicle warranties...

1. It is possible to purchase an extended warranty from another company, such as a service provider or an insurance company. By opting for this type of warranty, you have the option of having repairs carried out elsewhere than at the dealership. However, you'll have to pay the costs yourself and then claim a refund.

2. You can cancel the extended coverage simply by sending written notice to the insurer, but be aware that the insurer may charge you a penalty, calculated according to the cancellation table attached to the contract. The later the expiry date of your automobile insurance, the higher the penalty.

3. The dealer refuses to apply the warranty? The Office de la protection du consommateur (OPC) recommends that you first try to reach an agreement with the dealer. If this fails, you can send a formal notice. Then, if the dealer doesn't respond to your demand, you can take your case to court.

To buy or not to buy?

Ultimately, as the APA points out, an extended warranty is worth it if you're buying a used vehicle that can be very expensive to repair (luxury or European models, among others) and whose reliability is below average. Often, a single major mechanical breakdown is enough to justify the price. It's also a way of gaining peace of mind, and for some, it's worth everything.