Buying a car can be an exciting prospect. However, you need to make sure you think carefully about every part of the process so you get the best value for your money.
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There are many things to think about when you are buying a car. This includes deciding whether or not you want to purchase an extended warranty if there is no manufacturer’s warranty in place. Making this purchase may sound like a good idea but you could end up paying a lot of money for a warranty you do not use.
What is an Extended Warranty for a Vehicle?
An extended warranty is a plan you have the option to buy. It normally starts at the end of the manufacturer’s warranty, although they do sometimes overlap. It’s worth noting that an extended warranty often does not provide the same amount of coverage as a manufacturer’s warranty.
Is an Extended Warranty a Good Idea?
There are several pros and cons to consider when deciding whether to invest in an extended warranty for a car.
- The main pro to investing in an extended warranty is it provides cover for repairs that aren’t included in the plan. All you need to pay is the deductible.
- You do not have to spend time worrying about how you are going to pay for repairs that are covered by the warranty. This can be a big bonus as the worry itself can be an issue, even if the repairs are never necessary.
These are the main pros of having an extended warranty in place.
- It’s possible you will never need to use the warranty.
- The cost of repairs needed may be less than the cost of the warranty itself.
- Not all repairs are covered by most extended warranties for vehicles. This is why it makes sense to check what is included before buying a warranty.
- You may need to use a specific repair provider to adhere to the warranty.
- Someone is responsible for meeting the cost of the repairs covered by the warranty. If this party (manufacturer, dealer, third party) goes out of business, the warranty may be of no value.
You need to consider all of these drawbacks before you buy a warranty.
Alternatives to Buying an Extended Warranty
There are other options to consider if you are considering whether to buy an extended warranty or not.
You can increase your savings to be able to afford repairs to your vehicle when they are needed. This may mean you have to adjust your monthly budget but doing so takes the worry away without the need for an extended warranty.
You may also be able to learn how to complete several car repairs yourself. This makes having a warranty less necessary.
Only you can decide whether you should buy an extended warranty for your car. When you are making your decision, you need to weigh up the pros and cons and decide whether it’s worth making the investment.