Do I Really Need an Extended Car Warranty?
Ah, the extended warranty. These days, extended warranties seem to be offered for everything - even 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’ll definitely want to weigh the pros and cons before making the decision to spend extra money. Purchasing a car is no different.
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. Afterall, 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?
When you purchase a new car, it comes with a bumper-to-bumper warranty to cover maintenance and routine repairs on non-wear and tear components; The catch is that the warranty will expire after it hits a certain time frame or mileage number. This does not typically include the separate powertrain warranty, 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?
Warranties sold by dealerships can have a pretty wide range as far as what they cover and for how long. Some warranties may leave out some essential components, some may add in additional coverage perks, and others may even throw in additional options such as rental car coverage. Either way, you should have a basic bumper-to-bumper warranty extension at the least.
What Should You Think About While Considering an Extended Car Warranty?
Deciding whether or not to purchase the warranty boils down to how much money you’re going to spend vs. how much money you’re 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?
Asking these questions can give you some good insight into whether an extended warranty is a good option for you.
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
Don’t feel pressured to purchase the warranty at the time of the vehicle purchase. Extended warranties can be purchased at a separate time. Take the time to consider if this is the right choice for your car and for your finances.