When you purchase a new vehicle, it will be covered under a manufacturer’s warranty. The warranties cover specified issues with the car for a specified time. When you purchase a used vehicle, you can sometimes be offered an extended warranty to help protect your interests should you have mechanical issues with the automobile.
What Is an Extended Service Contract?
Choosing an extended service contract (ESU) helps you avoid expensive, unexpected repairs. You can’t avoid routine maintenance, though, because if you do, you can void the warranty. The ESU helps to provide financial assistance to cover the cost of unexpected repairs.
Your ESU will cover multiple types of repairs. That often includes some of the most expensive repairs. Usually, it can consist of coverages for the engine, transmission, and electronics systems.
Does Refinancing Affect Your Car’s Warranty?
Warranties and service contracts often survive refinancing your car. However, there are often stipulations within the warranty. Sometimes the warranty will be canceled if the vehicle is refinanced. These situations are rare, but you should read your auto loan and warranty paperwork to determine your options.
Typically, a simple refinance doesn’t end your time with the auto-warranty. However, some things will nullify your warranty. Repairs aren’t always covered under your warranty. It’s essential to know what items are covered before you need to use your warranty coverage.
How Does an Extended Warranty Affect Refinancing Your Vehicle Loan?
Usually, whether you have an extended car warranty or not isn’t factored into whether lenders will decide to refinance your loan for you. If you refinance your current loan, the manufacturer’s warranty remains intact. Extended car warranties should also remain unchanged unless the specific language in the contract negates that.
Things That Can Nullify Your Extended Warranty
Refinancing alone typically doesn’t void your warranty, but a few things can cancel it. Here are a few of those things:
- Misusing the car
- Changing the title
- Tampering with the odometer
- Making aftermarket changes
- Improper vehicle care
Refinancing your car won’t nullify your extended warranty on the vehicle. Refinancing replaces the current loan contract with a new one for your car. You can refinance through your original lender or a new lender.
Extended warranty payments are typically rolled into the original loan, so when you refinance, the warranty will also be covered under the new loan. Contact FinleyFi Solutions to learn more.