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Extended Warranties: Why Choose First New York

Written By: Erika Carroll, Senior Real Estate Loan Expert

You never want to think about your car needing expensive repairs. Depending on what’s wrong, repair and labor costs can range from hundreds to thousands of dollars. Plus, as your vehicle ages, you may experience more unexpected issues, requiring you to buy costly part replacements. To better shield yourself, it’s time you look into purchasing an extended warranty for your new or used vehicle.

How Can I Get Started?

It can be difficult to research the best-extended car warranty. From coverage plans to purchase prices, you may be wondering what vehicle service contracts are best for your needs.

That’s where First New York Federal Credit Union (FCU) can help. In this guide, I’ll explain the benefits of this additional protection plan and how it can help you cover major expenses. Plus, I’ll take a deeper dive into the specific plans we offer for new and used vehicles.

Discover how this extra layer of protection can help you in the long run!

What are Extended Warranties?

An extended warranty is also known as a vehicle service contract. It’s an additional protection plan offered to help cover repair costs on your new or used car.

What I like about First New York Federal Credit Union’s extended warranty plans is that they have a great selection of additional products and services. So, you can come to us to secure a great auto loan rate and payment while scoring additional bumper-to-bumper coverage through our extended warranties.

We offer new and used auto-extended warranties through Auto Exam. So, whether you’re purchasing a new or used vehicle or would like extra coverage for your existing car, we can help!

7 Questions to Ask Yourself Before You Buy

It’s always a good rule of thumb to ask yourself some questions before purchasing anything. Extended car warranties are no different.

We always encourage people trying to get an extended auto warranty through us to ask questions, so they feel comfortable and confident in their decision to purchase a warranty or not. Above everything else, we’re always looking out for our members’ best interests. We don’t want you to feel rushed to a conclusion or locked into purchasing something you don’t need.

Whether you’re purchasing through us or a dealership, I encourage you to ask these seven questions:

1. What’s currently covered under my manufacturer’s warranty?
2. Do I really need an extended warranty for costly repairs?
3. How long does my coverage last?
4. Who am I getting the warranty through?
5. Is the auto warranty transferable to another vehicle?
6. What does this warranty give me coverage for and to what extent?
7. Are there any additional benefits to this warranty compared to others?
   

Here’s a good on-hand resource I put together, so you don’t forget what to ask!

Pros and Cons of Extended Warranties

Now, that you’ve asked yourself some essential questions about whether an extended warranty is right for you, let’s move on to the pros and cons.

There are pros and cons to everything. However, by walking you through everything, you get all the information you need to make the best choice.

Let’s start with the pros!

Pros of Purchasing an Extended Warranty

Here, are the top five pros to buying extra coverage for your vehicle.

1. Extended warranties offer coverage after the original car warranty expires
2. It helps you save big on costly repairs
3. It’s best to get an extended warranty if your car is new or newer
4. Your vehicle will last longer because your extended warranty could pay for big expenses like engine, transmission, or break issues

Overall, the biggest pro to buying an extended warranty is saving you money in the long run or helping you pay off unexpected vehicle repairs. It’s extra coverage that lasts longer and could cover more expenses than your manufacturer warranty.

Cons to Purchasing an Extended Warranty

There are always drawbacks to any service contract. So, it’s best to do your homework and look into your coverage options. However, these are the top cons of an extended warranty.

1. Different levels of protection: There are always exclusions or limitations to any service contract. So, you’ll need to look at the protection level and what deductible fees are best for your needs.
2. Buying extended warranties is more expensive for used cars: If you wait to purchase a service on contract on your car, your cost will be based partially on the miles accumulated on your odometer. That’s why it’s recommended that you purchase your extended warranty sooner than later.
3. Not everyone uses their extended warranties: Some people prefer to set aside cash for costly repairs than purchase a plan they may never use. While this is one way to plan for unexpected and costly prepares, it may pay off in the long run to get the long-term coverage you need rather than set aside thousands of dollars on the unexpected car repair.
   

First New York’s Extended Warranties: Everything You Need to Know

Members frequently ask me, “How do extended warranties work at First New York FCU?”

The simplest answer: We can finance your warranty in your auto loan payment. It doesn’t matter if you’re just buying a car or if you already own it. However, depending on when you get the vehicle, you’ll either need a new extended warranty or a used extended warranty.

When it comes to already owning your car, we can do two things. We can refinance your current auto loan to add that in, or we can look at other loan options for financing the used extended warranty by itself.

No matter how you choose to get coverage, as your local Loan Experts, we can always find ways to help you get the best value.  

5 Main Benefits of First New York’s Extended Warranties

As your local credit union, we have the ability to provide you with competitive extended warranties that give you the coverage you need. Here, are the five key benefits of getting an extended warranty through us. You can print out this graphic I made as a quick reference!

1. Bumper-to-bumper warranty up to 8 years/125,000 miles (excluding normal wear and tear items)
2. Accepted at almost any repair shop in the country
3. Claims are paid directly by Auto Exam to the dealer: You don’t need to pay out of pocket other than your selected deductible (choose from $0 to $100)
4. Total Loss Refund option: If your vehicle is totaled, you will receive the FULL amount that you paid for your warranty (up to $2000)
5. Competitive pricing: First New York’s warranty prices are often lower than options offered at the dealerships and larger financial institutions
   

Get the Coverage You Need: Contact Us Today

As First New York FCU’s Senior Real Estate Loan Expert, I can walk you through the best options to help you secure the coverage you need. You can contact me directly at (518) 393-1326 ext. 1033 or call (518) 393-1326 and press 3 to talk to any First New York local Loan Expert.

Don’t wait for the unexpected. Gain peace of mind by visiting us online or contacting us today!