Everything these days seems to have extended warranty on them and this is extended down to the $5 child’s toy you purchased at the big box retailer. Why are these offered so frequently and do you really need them? You should be aware of the dos and don’ts before making the decision to spend extra money. This is also applicable when you are purchasing a car.
Your vehicle is potentially one of the most expensive investments you’ve made; Because of this, it can be tempting to purchase an extended car warranty. After all, repairs and maintenance on your car can be expensive; but do you really need an extended car warranty? Let’s explore.
What is an Extended Car Warranty?
Purchasing a car comes with a bumper-to-bumper warranty which involves covering maintenance and routine repairs on non-wear and tearing components. The main information is that when it gets to a certain time frame or mileage number, the warranty will expire. The separate powertrain warranty is inclusive, however, which typically extends out further and covers the essential items that drive the care.
The solution a car dealership is going to offer is an extended car warranty. Should you choose to purchase one, it can extend your bumper-to-bumper warranty by at least 20,000 miles, often more. Most warranties are offered directly through the dealership you’re purchasing from, however, it is also common for warranties to be offered through third-party companies.
What’s included in an Extended Car Warranty?
As far as what they cover and for how long; warranties sold by dealerships can have a pretty wide range. There are warranties that leave out essential components and there are others that add in additional coverage perks and others may event throw in additional options which include rental car coverage. Regardless of the situation, you are expected to have a basic bumper-to-bumper warranty.
What Should You Think About While Considering an Extended Car Warranty?
When you want to decide whether to buy or not to buy a warranty; it is usually determined by how much money you are going to spend vs. the amount of money you are going to spend. Will you save money down the road by spending money upfront on the additional coverage for your vehicle? Some things you should consider before making your decision are:
- What kind of car are you purchasing? Does it have a reputation for long life and quality?
- What is being covered in the warranty? Are they standard repairs that you’re bound to need down the road?
- How long are you planning on owning the car? If you plan to keep the car well past its pay off date, chances are you’ll need to get some pricey maintenance and repairs taken care of down the road.
- How expensive are potential repairs that would be covered by the warranty? Would it be cheaper to simply waive the warranty and pay for repairs as needed?
Should Your Purchase an Extended Car Warranty for a Used Vehicle?
Depending on the age of the vehicle, the shape that it’s in, and if there is any warranty left on it at the time of purchase, you may want to purchase an extended option. If you purchase a certified pre-owned vehicle, you’ll get to use what’s left of the warranty from when the car was new; But, how much time or miles are left? Purchasing a used vehicle can prove to be one of the best times to purchase an extended warranty; This is especially because you don’t know how the car was driven prior to your purchase – you could hit repair needs sooner than later.
When You Don’t Purchase the Warranty
Do not be pressured to purchase the warranty at the time you purchase a vehicle. You can purchase extended warranties at a separate time and not necessarily immediately you purchase the car. Take time to think about your decision if it is right for your car.