Is an Extended Warranty Worth It?

When you’re in the final process of purchasing a vehicle it is pretty normal to be asked if you would like to pick up the extended warranty. Many may think that they are saving money but taking it, but are you really?

There are several factors at play when it comes to wither you want to drop the extra money on the extended warranty, and even after all those are calculated luck can still be a factor. Here are some things you should consider while you’re weighing the cost of taking the extended warranty.

Factors to Consider

Is an Extended Warranty Worth It?

First of all, understand an extended warranty is really not a warranty at all. It acts more like a service contract or car insurance. In this way it can be considered indispensable when you have a very costly repair to be addressed. This is especially true if you’re purchasing an older model vehicle. Even with low mileage, older models are more at risk then a newer model of equal mileage.

You might think then that the extended warranty is only good on older vehicles, but this isn’t always the case either. Even newer cars with a manufactures warranty do not often cover excessive wear and tear. If you and your family are brutal on cars it maybe cheaper to prepare for the worst rather then pray for the best.

Also, having an extended warranty contract might be worth it if your financial situation needs an extra safety net. This can be especially true if you took out a bad credit loan on your automobile. By paying a bit month to month, you can potentially avoid any sharp expenses that may jump out at you if or when your car does end up in the shop.

However, weigh the actual fine prints of the contract carefully. Research other warranty prices before hand to see if its a fair deal, and pay extra attention to any items excluded by the warranty. After all, an warranty that only covers things that might be already covered by the manufacturer, or are low budget fixes isn’t really saving you and could potentially just be ripping you off.

The Right Dealer, The Right Offers

When you go to a shady dealer, you’re likely to be offered shady services. That’s where we can step in. Take just three minutes to get pre-approved at one of our reputable dealers in your local area. They’ll have the programs for you including dependable extended warranties if you need them, without having to worry about being shaken down for everything you own.

Posted on April 16, 2014 by in Car Maintenance
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