Buying a used car can be like navigating a minefield. You’re making a decision about the vehicle that will carry you and your family from point A to point B safely– perhaps for a long time to come.
While you’re signing the paperwork, you may be offered an extended auto warranty, which can compound your stress. What is an extended warranty? Do you need it? And what about the worst extended auto warranty companies?
Although extended warranties are optional extras, they can be extremely useful if you find yourself purchasing an older car with a higher likelihood of breaking down.
Read on to learn more about extended car warranties and find out how you can decide if you need one for your car.
What is an Extended Car Warranty?
Put simply; an extended auto warranty is similar to an insurance policy. If there is a mechanical or electrical fault in your used car, an extended auto warranty can save you a lot of money on costly parts and repairs.
Usually, an extended warranty will cover your car’s engine, suspension, breaks, steering, air conditioning, clutch, and electrical components like your in-car audio system.
However, an extended will not cover parts subject to wear-and-tear and regular replacement or maintenance – such as tires, windscreen wipers, and brake pads.
All new cars come with manufacturer’s warranties. Purchasing an extended warranty is a way to cover repairs on your vehicle when the manufacturer’s warranty expires.
You can purchase an extended warranty from some car manufacturers and third-party providers like dealerships and independent providers.
Do You Need an Extended Warranty?
Choosing to purchase an extended warranty for your used car is a personal decision. When weighing up if it’s worth the cost, you should consider factors like the age and reliability of the vehicle, as well as whether you would be able to finance any necessary repairs out of your own pocket.
If the original manufacturer’s warranty is close to expiring or has already expired, you may want to purchase an extended warranty to ensure you still have a cover.
An extended auto warranty could be the answer if you don’t have funds for emergencies, and paying for expensive car repairs would put you at financial risk.
Another thing to consider is the possibility of purchasing an extended warranty and never having to file a claim. Bear in mind, though, an extended warranty is similar to any insurance policy: you won’t regret passing it up until you really need it.
An extended warranty will give you peace of mind because you can’t predict if your car will ever need extensive repairs.
The Bottom Line
When considering if you should purchase an extended warranty for your car or not, there are several factors you should think about. Think about how reliant you are on your car and if you have the funds to cover the most expensive repairs – like engine failure.
If your car is older and less reliable, you should consider purchasing an extended warranty. You never know when you may experience a major mechanical breakdown that could cost you thousands of dollars. At the end of the day, peace of mind is priceless.
