Extended Warranties – Are they worth your money?

Extended Warranties – Are they worth your money?

Extended warranties have often been thrown at you as a sales pitch by the car dealership when you are buying both a new car and a used car.  People would think that the dealer was just trying to get some more money out of them, but in reality these extended warranties can really save you some money in the long run, more so with used cars.

New cars usually tend to have great warranty coverage for 3-5 years depending on the make of the vehicle and usually those warranties will transfer to the second owner if they are still within range and depending on the make as well.  When these warranties are no longer in effect, what will happen if something happens to the car mechanically?  Well you’ll have to spend money out of your own pocket to pay for the repairs and depending on the severity of the problem, it can run you from a few hundred to a few thousand dollars.

No one can ever know if a car will fail in the future.  Even if the car has been inspected and in some cases even certified, anything can happen.  This is when the extended warranties come into play and save you more than what you originally paid to have this coverage.

There are multiple types and levels of coverage offered by the dealership so make sure you read the details of what is covered and how long your vehicle will be covered. If your used car still has some manufacturer warranty left over, the third party warranty will sometimes take effect until after the manufacturer warranty runs out.

Take the time to read through your warranty options and really consider them when purchasing your next used car. It’s better to be safe than to later regret not buying the warranty and having to spend thousands in repairs.