Should I Buy An Extended Car Warranty?
If you go buy a car, both brand new or pre-owned, you are probably going to be offered the opportunity of buying an extended warranty for it, so it is normal for you to wonder if you really need the extra coverage or not.
If you are buying a new car, it already has factory warranty. But, if you plan on keeping the car past the time when the warranty runs out, it is probably a good idea to purchase additional extended coverage.
If you’re buying a pre-owned car, or if the car warranty is ready to run out on your car, you will also want to give strong consideration to purchasing an extended warranty. Even if you have a car that you’re planning to sell outright, if it has an extended auto warranty on it, that’s added value and a great selling point you can use.
What exactly is an extended car warranty? Very simply, it is a warranty that comes into existence as soon as the initial factory warranty runs out. In the case of used cars, the dealer usually offers a warranty that lasts between a month and a year, or a little more.
The extended warranty is activated when the dealer’s warranty runs out. For anyone who is planning to drive a car beyond the extent of the warranty it came with when it was bought, an extended warranty can be a lifesaver.
Imagine this scenario: It usually costs anywhere between a few and several hundreds of dollars to buy extended coverage. It sure sounds like a nice chunk of money. But unfortunately, once your car hits the 80,000 miles mark, things can start going wrong, and repairs could cost you hundreds if not thousands of dollars.
If you look at it this way, you can easily see how an extended warranty could pay for itself in just one repair bill. Having extended warranty coverage is surely the way to go. One thing to keep in mind about extended car warranties is that they aren’t all the same.
Do your homework and find one that fits your needs. Some warranties offer coverage for certain repairs and not for others. Some will protect you no matter what happens to the car.
You should customize picking your warranty depending on the type of car. Some models are infamous for having problems with the transmission, while others consistently experience engine problems. Make sure the warranty you buy covers the problems that are typical with your model.
Should you buy and extended car warranty? The answer depends on your needs, but for many, extended car warranties are worth every penny. If you will be driving your car past the time when the factory warranty runs out, having extended coverage will give you peace of mind, especially when you think that the warranty will pay for itself when the first expensive repair is needed.
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