Why You Should Avoid Extended Vehicle Warranties
Here’s the harsh truth about an extended warranty on a vehicle. Most people who buy them will never use it – or never need it.
The concept of purchasing an extended vehicle warranty is surprisingly emotional. If you want the peace of mind in knowing that you’re covered, and the cost doesn’t matter, the benefits outweigh the disadvantages.
If you want the get the most bang for your buck, this purchase is likely one to avoid.
Should I Buy an Extended Warranty?
If you are thinking about purchasing an extended warranty, here are some of the questions you should ask yourself before agreeing to the expense.
1. How long will I be keeping the car?
Most vehicles come with a 36,000-mile, 3-year bumper-to-bumper warranty. Several brands extend that even longer. If you plan to get a new car before that expires, there is no need to purchase an extended warranty.
If you plan to drive the car until it’s dead, you might consider extending a warranty to six years to cover potential costs.
2. Will I be using the extended warranty?
An extended warranty doesn’t cover your regular service and maintenance tasks. It doesn’t pay for your oil, change your brakes, or handle similar items. You can access this protection when something breaks on the vehicle that should still keep functioning.
3. Do you already have an extended warranty?
Some vehicles come with a 10-year, 100,000-mile warranty on the powertrain. If something goes wrong during that time with that component, you’re covered. Is it worth rolling the dice to pay for a broken door handle?
4. Can I buy an extended warranty later?
If you purchase an extended warranty today, it might not go into effect for five years or more. Why spend good money now when you can decide later if it is necessary? Some manufacturers let you buy this option after you know you’ll be keeping the car.
The chances of having the worst-case scenario happen to you are minimal. Could the transmission die, or the electronics fizz out? Sure – but you might still be ahead of the game when you compare the repair cost to the expense of your warranty.