Buying a Car With an Extended Warranty
A car with an extended warranty can save you money in the long run if something unexpected happens and repairs are needed. However, there are a few things to consider before you decide to invest in one.
An extended warranty is an auto service contract that pays for repairs or maintenance on your vehicle after the manufacturer’s factory warranty has expired. These are offered by car dealerships, independent companies and car manufacturers, and prices and coverage vary significantly. Some extend the coverage on your original warranty, while others cover only specific components or preventive maintenance services.
When deciding to purchase an extended warranty, do your homework and watch out for auto warranty scams. A reputable company will display its contact information publicly, such as on its website or Facebook page. You can also check whether a business is legitimate by looking up the caller ID on your phone or using a public directory. Avoid any company that doesn’t display a publicly listed number, as this could be a sign of a scam.
You should also consider how much the warranty will cost and its terms and conditions. Typically, it will have a maximum repair cost, a deductible amount and certain exclusions. You should also look for how transferable the warranty is and which repair shops are approved. If you are considering buying a used car with an extended warranty, research the reliability of the make and model before making your final decision. Online sites can provide you with long term reliability data and testimonials from actual car owners.
Depending on the make and model of your car, it may be worth paying for an extended warranty if you plan to keep it for a long time or if it has a lot of miles. However, it is also possible to skip the warranty and save money by shopping around for the best price and negotiating with dealers. You can then put the money that you would have spent on a warranty into savings or other automotive investments.
Extended warranties can cost up to $500 per year, which can add up to thousands over the lifetime of a car. Some people can’t afford to pay for these costs upfront, which is why a good extended warranty will usually include a financing option that allows you to roll the cost of the warranty into your car loan.
The top rated car warranty providers offer a wide range of plans to fit different needs and budgets. They are ranked for their cost, coverage quality and added features like roadside assistance and rental car reimbursement. Some also cover maintenance items, which can be helpful for budget-conscious drivers.
The most expensive warranties tend to be bumper-to-bumper plans, which typically cover the most mechanical parts of a vehicle. These plans can be more than double the cost of a basic powertrain warranty, but they can provide peace of mind and help you avoid financial disaster in the event of an unexpected repair.extended warranty car
