Used car warranties or extended auto warranties are purchases that you should not rush into. You should make sure that what you are buying is a good investment. Here are some things that you should consider when buying an extended auto warranty.
You should first figure out if the car you are purchasing has a warranty. It may still be covered under the factory warranty or under an extended warranty if it is a certified pre-owned car.
But just because it has a warranty, doesn’t mean that purchasing one isn’t a good investment. The factory warranty
and the certified pre-owned warranty
will expire. Determine how long you plan on keeping the vehicle. If you are going to keep it for more than two or three years, and extended auto warranty will be a good investment.
Next, figure out your budget. If you are not going to be able to pay for a major repair bill, then an extended warranty is a good investment. If a high repair should occur and you can’t afford to fix it, then you will possibly be out of a car.
If you are concerned that you may not be able to afford the initial cost of an extended warranty, don’t worry. If you purchase a warranty when you purchase the car, they can roll the cost into your monthly payments, making them increase by only a few dollars. If you purchase the warranty after the fact, many companies will allow you to make monthly payments.
Note: The higher the mileage on your car, the more expensive an extended warranty will be. If you wait too long and you the car has 100,000 miles or more, the chances of even getting a warranty are slim to none.
To make sure that you get the best investment you can, shop around. See what plans your dealership offers, then shop online. Make sure that you can have your vehicle serviced at any certified repair shop and not just at the dealership where you purchased the warranty. This will come in handy should your car break down while you are travelling. Also, make sure that the plan will cover “wear and tear” items ( items that break due to normal use). Don’t forget, in order for an extended warranty to be a good investment, you need a plan that suits your needs.