The new year has arrived, and what better time to embrace a fresh start by taking charge of your finances. With the cost of living on the rise, effective and careful budgeting has never been more important.
An often-overlooked way to protect your pockets is an extended car warranty, while not a necessity for owning a car they are recommended as they can be an excellent tool to help safeguard your financial wellbeing.
At Warrantywise, we offer a range of plans tailored to your needs. In this article we will explore how extended car warranties can help you budget for unexpected repairs and get control over your finances.
The hidden costs of owning a second-hand car
When purchasing a second-hand car, most people focus on the upfront cost, often ignoring the additional expenses that come along with it. Whilst determining how much of your salary to spend on a new car is important, factoring in the not-so-obvious expenses such as potential repair costs is equally important. Cars are unpredictable and can lead to unexpected and expensive repairs over time, but extended car warranties can help minimise surprise costs and help to make your finances more stable.
Many new cars come with a manufacturer’s warranty that can last around 3 years, although their plan lengths depend on the manufacturer. Once your standard warranty expires, considering an extended car warranty is an important step in the car ownership process.
You may think you need to stay with the manufacturer once the standard warranty expires, but this isn’t the case. We’ve written a guide on why the manufacturer’s warranty isn’t always the best to help you decide.
Even if your car is known for its reliability, issues may still arise. An extended car warranty serves as a valuable safety net, providing reassurance even if you don’t end up needing it frequently.
Why are extended car warranties an important tool for budgeting?
As a car ages, owning it can become increasingly expensive. If major components such as the engine or transmission unexpectedly fail, it could leave you with repair bills that may be difficult to afford at short notice.
The cost-of-living crisis is expected to heighten in 2025 [1], which can put significant pressure on individuals and businesses across the UK, including the motor industry. Recent reports made by the Motor Ombudsman indicate that repair costs have reached record highs, with forecasts suggesting that this will continue to rise during 2025.
According to a report made by the Motor Ombudsman – “The 2024 Independent Garage & Franchise Dealer Workshop Survey”, 56% of surveyed customers are now delaying essential vehicle repairs. In addition to this, there has been a 48% decline in customers being able to afford routine maintenance and ad-hoc repairs as they prioritise saving money [2].
These findings highlight the importance of an extended car warranty. While an extended warranty is an added expense, it provides an extra layer of protection as well as peace of mind. Over time, it can save you hundreds – or even thousands – of pounds, as well as ensuring your vehicle remains safe and well-maintained.
How would an extended car warranty benefit you?
An extended car warranty can also support vehicle longevity as ensuring maintenance is completed as and when needed will help your second-hand car stay reliable for longer. When you have an extended car warranty in place it makes you more likely to address any car-related issues more promptly. Avoiding car maintenance can lead to larger costs later down the line, so having a plan in place can save you money in the long run.
Regular servicing also contributes to vehicle longevity. You must ensure your vehicle is serviced to manufacturer standards as part of your warranty terms, meaning your vehicle will naturally be well maintained.
Our warranties can offer many benefits not just for better budgeting but extras that will make your journey less stressful, especially in the event of an emergency. Warrantywise plans can be tailored to suit your needs, and there are different additions for your plans that can be added at an extra cost but are there to make your life easier.
Take control of your budget
Incorporating an extended car warranty into your financial planning can help mitigate unpredictability of unexpected repairs. When you choose a Warrantywise plan that is tailored to your budget you can enjoy greater peace of mind and maintain better control of your budget. Kick off the new year with confidence, knowing you’re prepared for whatever the road ahead may bring.
Remember, no warranty can include everything so be sure to understand your plan terms. Our plan books are written in plain English to help you make an informed decision. Start your warranty quote today and buy online.
Sources
[1] https://www.thisismoney.co.uk/money/cars/article-14267809/car-repair-costs-set-soar-HIGHER-2025-motoring-experts-warn.html – This is Money article on the rising costs of repairs in 2025
[2] https://www.themotorombudsman.org/press-releases/tmo-poll-shows-rising-costs-will-pose-biggest-challenge-for-75-of-vehicle-repairers-in-2024 – Motor Ombudsman report on rising costs of repairs