An extended car warranty: Is it worth it?
If you got a new car, you might have been thinking about whether you should buy an extended car warranty together with your car warranty. A car warranty, often made through your dealership or manufacturer, usually covers repairs for a specific amount of time. An extended car warranty would cover additional costs after your warranty expires, but it might not be worth your money.
Car warranty: an overview
A car warranty is often a contract made by your manufacturer or dealership to help you cover repairs. What car warranty covers depends on the warranty, level of coverage, and brand of the car. Usually, a basic warranty would cover oil changes, filter changes, tire rotations, system checks, and manufacturer-scheduled maintenance.
The time of the warranty also changes according to your type of warranty and the brand of car. It can range from 3 years / 36,000 miles for a basic warranty for Subaru or a Nissan to 10 years / 100,000 miles for a powertrain warranty for a KIA or Hyundai.
The biggest benefit of getting an extended warranty is the guarantee you'll be able to pay for any unexpected cost.
Extended warranty: an overview
An extended warranty would give you some benefits your usual car warranty doesn't cover. It can help you save money on repairs and it can be transferable between owners. Usually, an extended car warranty can offer you benefits such as roadside assistance, rental car reimbursement, and repair coverage.
However, purchasing an extended warranty can be a gamble: A Consumer Report in 2014 found that 55 percent of owners who purchased an extended warranty didn't end up using it. To decide if an extended warranty is worth it for you, you should take into consideration its cost and the likelihood you'll use it.
Why should you get an extended warranty?
The biggest benefit of getting an extended warranty is the guarantee you'll be able to pay for any unexpected cost. If your car needs some sort of repair that is under the warranty, you would only be responsible for the deductible instead of paying the full cost.
An extended warranty will also provide you peace of mind: you wouldn't have to worry about saving a lot of money for any unexpected cost. You would spend a fixed amount of money for the warranty, and if need be, any extra low cost for the maintenance. Any emergency would cost you significantly less from not having an extended warranty to rely on.
Having an extended warranty would provide you a safe piece of mind the same way any insurance would. You don't want to pay for it, but you are definitively happy if you ever need it.
