If you buy a new car, the dealer will likely offer you an extended warranty. While the cost of a warranty varies and may seem expensive, it can save you money in the long run if something breaks down. If you are a high-mileage driver, an extended warranty could pay for itself in the first few years. It also can increase the resale value of your vehicle. However, you should consider the cost of the warranty and what it covers before making a decision.
An extended warranty costs money, and if you’re financing your car, the extra cost will be added to your loan. This can add up to thousands of dollars. You should always do the math and determine if the warranty will pay for itself in the first few years. You should also look at whether the warranty company is reputable and whether it has a good track record.
A warranty can cover repairs to your engine, transmission and other components in the event of a mechanical breakdown. However, many warranties include a deductible that you must pay for each repair. In some cases, the warranty will only cover parts that are deemed “severely depreciated” and may exclude other important items. In addition, the warranty company will most likely require you to follow recommended maintenance schedules or else the coverage could be invalidated.
You should also ask what the coverage limits are and if there are any exclusions. If the warranty has a lot of exclusions, it may not be worth buying. Finally, you should check if the warranty can be transferred to a new owner if you sell your car. Some dealers and third party warranty providers offer a warranty that can be financed with 0.0% APR at the dealership. You should compare these to the manufacturer-backed warranties, which are usually much cheaper.
Before you decide to purchase an extended warranty, do some research on your own and talk to others about their experiences. You can also use third-party websites that compare the prices of different warranties. Before purchasing a warranty, you should also be aware of how the dealer and/or manufacturer will handle claims. You should be able to find this information in the fine print of the contract. The best way to avoid getting ripped off is to buy a warranty that’s backed by the manufacturer and not the dealership. This will ensure you’re getting the best deal and that the warranty company will stand behind its products. Finally, you should never let a salesperson pressure you into purchasing an extended warranty. Doing your own research will help you make the best decision about whether or not it’s right for you. You can also choose to skip the warranty and instead put the money toward other expenses or simply save it. After all, you never know when a car is going to break down or need a costly repair. should i buy extended warranty on new car