“Would you like to protect your purchase with an extended vehicle warranty today? It’s only…”
 
Anyone who’s ever made a large purchase, like a computer, a television, an appliance, or a car has heard this question. and many consumers turn down the offer. But are those people making a mistake? Do you really need an extended vehicle warranty, and is it worth the money? Here is what you need to know and some questions to ask yourself before making the decision.
 
What is an extended car warranty?
An extended warranty, or mechanical breakdown protection, is a service contract that covers the cost of repairs after the vehicle’s manufacturer warranty expires. For the sake of comparison, it is like an insurance policy on your vehicle.
 
Who offers extended warranties?
Dealerships, insurance companies, credit unions, auto club and other third-parties. Like anything else, shop around. It is important to understand what the extended warranty covers and where you can take your car for repairs. Here at Arbor Financial our mechanical breakdown protection is also transferable if you sell your car and comes with roadside assistance. In addition, our Nationwide coverage allows you to choose where you want to take your car for repairs. In 2022 alone, our coverage saved members a total of $191,101 in repairs. 
 
Is there a deductible?
Fully understand the policy deductible before committing. At Arbor Financial, we have a zero deductible policy, whereas many policies require deductibles that could cost you several hundred dollars out of pocket before the warranty starts paying for replacement or repair.
 
What is the reliability history of your particular make and model of car?
Let’s face it, not all cars are equal. There’s plenty of outlets online that track customer complaints, and it would be worthwhile for you to investigate them as well if you’re considering buying a car. Understanding the history of your car can help aid you in deciding if an extended warranty is right for you.
 
How does an extended vehicle warranty help your budget?
By purchasing a warranty you protect yourself against unexpected repair expenses. In 2022, our highest claim was over $8,000 and the member paid nothing for the cost of the repair due to having the warranty. This protected the member from a large unexpected cost and helped protect their budget. Remember, even the most reliable vehicle can develop a mechanical problem.

Purchase your extended warranty three easy ways: 

1. Warranty Loan Option - Finance your warranty for as low as 5.99% APR for up to three years².
2. Refinance Your Auto Loan - You can include the warranty into your auto loan for a low monthly payment. 
3. Cash - You have the option to pay for your warranty in full.

Arbor Financial offers extended vehicle warranty options for members to choose from. “Our loan rates are competitive, and members can apply for a loan right over the phone for quick loan approval and disbursement" says Arbor Financial's Vice President of Loan Services. All of Arbor's mechanical breakdown protection options come with these great benefits: $0 deductible, nationwide coverage, transferable plans, total loss refund¹, and 24/7 emergency roadside assistance (towing, lock-out service, battery jump, flat tire assistance, and fuel delivery). Learn more about coverage. 

Even if you have paid off your car or have your auto loan through another institution you can still add Arbor's Mechanical breakdown protection to your vehicle for added peace of mind. 

1. Must purchase Total Loss Refund option.