Buying a car is a major life decision and a big investment, so it’s important to do anything you can to take care of your new vehicle. This may include buying an extended warranty for the vehicle, but savvy consumers are starting to question whether or not this is a worthwhile step to take. Here are a few things to consider in determining whether or not you should choose this option for your next vehicle.
How Will Warranty Restrictions Affect You?
If you’re considering an extended warranty, the first thing you should do is read through the terms of coverage. While this requires reading the fine print, it can save you a hassle later. In addition to requiring preventative maintenance, such as getting regular oil changes, the warranty may require that all service and repairs are done by an authorized dealer. This may not be an issue for everyone, but, if the closest dealer is several miles away, it may not be worthwhile to buy the warranty.
How Reliable is the Vehicle?
If you plan on buying a newer vehicle, you may not get much use out of an extended warranty. Newer cars and trucks rarely need major repairs until years down the road and, by that time, any warranty has probably expired. However, if you’re buying a vehicle that’s more than a few years old, the possibility of needing significant repairs is higher. In that case, it may be helpful to have a warranty to cover those costs.
How Much Will Repairs Cost You?
There are several reasons to research the type of vehicle you want to buy before making a commitment. One of those reasons is to find out what parts of the vehicle commonly break down and how much those repairs cost on average. If repairs won’t cost you more than $200 to $300 per problem, it’s not worth it to pay $1,000 to $3,000 for an extended warranty.
In the end, it will ultimately be up to you to decide if an extended warranty is really worthwhile. It can serve as an insurance policy against mechanical failures, so you can get a little help in keeping your new vehicle running. However, if you feel as though you don’t need that safety net, you can save money by declining the option.