Do You Need an Extended Car Warranty?

You just bought a new car and perhaps are thinking of getting an extended warranty for your peace of mind. While an extended car warranty may come in handy, covering costs of specific repairs when your manufacturer’s warranty expires, they aren’t for everyone.

In the heat of the moment, an extended warranty sounds like a good idea, but they often come with a high price tag and won’t necessarily cover everything that could go wrong. You may be surprised to learn that most people who get an extended car warranty either don’t need it or end up never using it.

We all get it; sometimes, we need or want extra security when it comes to things we’ve spent a lot of money on, and while it may seem like a safety net, do you need it? Read on to find out.

Things to Consider Before Getting an Extended Car Warranty

1.    How long do you plan on keeping the car?

How long you plan on owning the car is one of the essential things to consider before getting an extended car warranty. Most cars come with a standard bumper-to-bumper warranty that lasts three years – even longer, depending on your car brand.

You don’t need an extended warranty if you keep the car for a shorter period than your factory coverage. But if you plan on having your vehicle for longer, it may be a good idea to get an extended warranty to cover repairs in the fifth year and after.

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2.    What repairs will the extended car warranty cover?

Just like bumper-to-bumper factory warranties, extended warranties won’t cover everything, such as wear items like brake pads, tires, and windshields. Also, in some cases, the warranty may not be honored if you go against the terms described by the manufacturer. Make sure you research what an extended warranty will cover and what it won’t.

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3.    What if the extended warranty overlaps?

If the extended warranty’s coverage period overlaps with the manufacturer’s warranty, you may end up paying for something that you already get for free. And in the case of a new car, the extended warranty typically won’t kick in until the manufacturer’s warranty has expired.

4.    Will my local dealership accept my extended warranty?

If you get an extended warranty, keep in mind that not all dealerships will accept third-party warranties. Therefore, before paying for an extended warranty, be sure to call and check with your local dealership to see if it’s something they would accept.

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Conclusion

One thing’s for sure; an extended warranty will add more cost to the price of the car. When you factor in the warranty cost to your monthly payments, it may not seem like much. However, even if you’re not paying for it all upfront, the costs could still add up.

All in all, it’s up to consider whether the peace of mind provided by an extended warranty is worth the cost. Instead of getting an extended warranty, you might consider putting the money into an account. You can save the money or spend it on anything else if you don’t end up needing it for repairs.

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