To help defray the costs of some auto repairs, some car owners are purchasing extended warranties. Even though the idea of an extended warranty might seem like a good idea, in some situations, it could be a waste of money. Before buying an extended warranty, here is what you need to know.
Why Should You Buy a Warranty?
You should consider buying an extended warranty if your car is beyond the manufacturer's warranty. This is especially important if the car is used and you just purchased it. Even though the car might seem to be in good shape, the warranty can provide you with peace of mind about your newly acquired car.
If you are thinking of selling your car in the future, buying an extended warranty can be a selling point. A potential buyer could be more willing to buy your car if he or she has the reassurance that a warranty is in place to help cover the costs of auto repairs.
Why Should You Pass on the Warranty?
An extended warranty is not always the best way to spend money on your car. For instance, a leased car that is covered by the manufacturer's warranty does not need the added coverage of an extended warranty. The only exception is if you are planning to buy the car later or you are going to lease the car beyond the manufacturer's warranty.
What Should the Warranty Cover?
One of the benefits of extended warranties is that you can tailor it to fit your needs. You do not have to take the standard warranty offered. For instance, if your car's powertrain is covered for the next 10 years, you can opt for a warranty that covers your bumper-to-bumper needs. You can also add special provisions that you would not find in your manufacturer's warranty, such as roadside assistance and car rental reimbursement.
It is important that you understand exactly what your warranty covers. Ask for clarification, if necessary. Some warranties have exclusions that could lead out major repairs. For instance, your warranty might only cover the mechanical breakdowns of your car, but not those repairs that are needed due to wear and tear. Considering that a large number of repairs that you will experience over time are due to wear and tear, this could result in you paying out-of-pocket for wear and tear-related repairs.
A great resource for determining whether an extended warranty is needed and what it should cover is your mechanic (like those at AutoMedics). He or she is most familiar with your car and can give you sound advice that is specifically related to it.