You’ve just purchased a new vehicle. Congratulations! You’re now ready to start throwing around phrases like “Extended Auto Warranty Protection“. Doesn’t that sound fancy? But what does this mean for your wallet and you?
Firstly, let’s be clear about one thing. A extended auto warranty doesn’t protect your car against all damage. The extended warranty is more like an auto insurance policy to cover specific repairs when your manufacturer’s warranties expire. It’s more like a safety-net than a bulletproof jacket.
You may be wondering whether this additional coverage is worth it. You don’t need to add any more expenses to your budget. After all, buying a car is expensive enough. Then things start to get interesting.
Imagine you are driving along the highway and your engine suddenly begins to make noises so loud that a heavy metal group would be jealous. A repair bill without an extended guarantee could cost as much as a vacation. If you have one, what are the benefits? It’s possible that you only need to pay a fraction.
But wait! But not all extended warranties were created equal. Some warranties only cover the basics – like problems with powertrains – while others are much more comprehensive, including everything from air conditioning to electrical systems. Read the fine print so you know what exactly you’re buying.
Now let’s talk money. The cost of extended warranties may seem high at first, but it is an investment for peace-of-mind. Imagine not worrying every time you notice a strange noise on your dashboard or see an alert light.
There’s also an upside: What if these expensive repairs never become necessary? If you don’t need the repairs, then you have paid for something which you did not use. This is similar to buying concert tickets but missing it because of traffic.
It can be frustrating to deal with warranty companies. You’ve probably tried to contact customer service, only to find yourself on hold for more time than you would need to watch an entire series of your favorite TV show. It’s like that.
There’s a twist to this story: some dealers offer their own versions of extended warranties, and third-party providers also provide options. Both have their pros and cons. Dealership plans are easier to manage but may cost more. Third party options can save money, but they also come with a set of hassles.
Let’s add some real life stories to the mix:
Joe, my friend, once had a transmission failure two months after the warranty period of his manufacturer expired. He was lucky to have purchased an extended plan, which allowed him to pay almost nothing for the $3,000 repair.
The extended warranty my cousin Lisa purchased when she bought her SUV 5 years ago has never been used. She is still driving without any major issues.
So, what is the moral of this story? Extended warranties for autos can save you money or ruin your life depending on how they are used.
Prior to making any decisions, it is important that you do your research.
1) Compare different plans.
2) Review reviews.
Ask as many questions as you can.
Consider the potential benefits against any costs.
5) Trust your gut.
Wait…no conclusions yet! It’s a personal choice, a mix of financial concerns and risk tolerance.
Have a safe and enjoyable drive!