Do You Really Need an Extended Car Warranty?

Car salesmen are always trying to upsell you when you’re shopping for a new car.

An extended warranty may be one of the many “upgrades” they offer. Unless you go into negotiations fully informed, you may not know if it’s worth the added expense.

We’ve outlines all you need to know about extended auto warranties below:

What Is an Extended Warranty?

Basically, an extended warranty starts where a manufacturer’s warranty ends.

These plans cover many of your vehicle’s repair costs if something were to go wrong. Many new cars come with a manufacturer’s warranty of 3 years or 30,000 miles (luxury models may offer more).

The cost of bumper-to-bumper coverage will be folded into your financing, but an extended warranty agreement is going to be a separate expense.

Learn More About Extended Warranties

If you’re trying to keep your monthly payments low, you may be tempted to forgo additional coverage, but you may be overlooking some important information.
The average driver drives their new car for about 6 years, if not more.

In that time it’s likely that an extended warranty will come in handy at some point.

When Are Extended Warranties a Good Idea?

Deciding factors in warranty coverage should include how long you plan to own your vehicle, the number of miles you plan to drive, and how large your risk tolerance is.
If you need a major repair, can you afford to pay entirely out of your own pocket?

Get a Free Quote on Extended Warranties

Extended warranties don’t just extend the length of your coverage. They may also cover parts and repairs that your factory warranty can’t.

The downside is that you may be limited to specific repair shops or brands for replacement parts or systems.

Look at a new or used car warranty the same way you would insurance. It may seem like an unnecessary expense, but you’ll be happy you have it when there’s a big repair.

The coverage and cost of an extended warranty varies by provider as well as by the make, model and repair history of the car. Be sure to shop around before committing to any specific offer.

Make sure you don’t forget to read the fine print of your warranty so you can know exactly what’s covered and what’s not.

If you want to learn more about extended coverage, click here.