Should You Get an Extended Car Warranty?
Most times, when you buy a new car, your dealer will advise you to get an extended car warranty that will cover repair costs after the actual included warranty expires. While the idea may sound good, it also means additional upfront expense. But, is this actually a good deal? Read on to find out.
What Warranties Does Your Car Include?
All cars that are purchased brand new come with a number of warranties such as the bumper-to-bumper warranty, which remains in force for around 3 years, and the powertrain warranty, which typically lasts even after a car’s bumper-to-bumper warranty has expired.
Should You Purchase an Extended Car Warranty?
If your car, unfortunately, happens to breakdown after the included warranty has expired, you’ll need to pay to get the car fixed. Had you instead purchased an extended warranty for your car, the repair would not have cost you. It’s scenarios like these that make it worth getting an extended warranty. If you are trying to decide whether you should purchase an extended warranty, here are a few questions that you may want to take into consideration:
- Would you be able to pay for any future repairs yourself?
- Is the cost of the extended warranty worth the peace of mind you will get from knowing you won’t need to incur any unexpected expenses?
- Will the total repairs cost you more than what you’ll need to pay for the warranty?
Keep in mind that extra car warranties, in almost all cases, translate to a huge profit for the dealer. The thing is, dealers often sell extended warranties as a way for you to protect your investment. However, cars seldom work out to be an investment because they lose value over time. Also, given that most dealers offer extended warranties for a small payment that is to be made on a monthly basis, you may not actually be aware of how much the warranty costs in total.
Keep in mind that while dealers may make it seem like you have to purchase the extended warranty along with your new car, the fact is that you can buy it at any point. So, it actually makes sense to get an extended warranty when your car’s included warranty is nearing expiration.