Should You Get an Extended Warranty on Your Vehicle?
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If you own a car or truck, you’ve probably been pressured to buy an extended warranty – whether by the car dealer or various companies that offer this service. So is an extended warranty worth the cost? There’s no simple answer, but we can give you a few pointers on the pros and cons.
- Extended warranties cover the most costly repairs that can occur with your vehicle – including expensive technology such as computerized equipment and electrical wiring that are part of all modern vehicles. If you plan on keeping your car for many years, the extended warranty could pay off in the long run.
- When you purchase an extended warranty, the dealer takes care of all the paperwork and payments. You won’t have to worry about any of the details – and your vehicle will be covered for many years. In addition, the warranty usually allows you to get your car repaired at any dealership that sells the same brand – anywhere in the U.S.
- Extended warranties can be costly – and you have no idea whether you will really need it or not. Buying this type of warranty is essentially like placing a bet. If you feel that your vehicle is of very high quality and dependable, you may not want the warranty. However, if you’re not so sure about the quality or plan to keep the vehicle for many years, it may be better to buy the extended warranty.
- Extended warranties do not cover all repairs. You’ll need to read all of the fine print (and there’s usually a lot of it) to make sure what is covered and what is not. If major issues such as engine failure, computerized systems and electrical wiring are not covered, you should not buy the warranty.
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