Do You Need an Extended Warranty on Your Car?
So you've decided to buy a car. Excellent! It can be a really exciting time because owning a new car can give you financial freedom as well as literal, physical freedom on the open road. But just because you shook the dealer's hand doesn't mean the deal is done. You still have to go over the finer details of the contract and decide if you want to add a bunch of extras or not.
If you were a good haggler, you might have gotten a really low price on your car. But once you sit down with the dealer in his office, you'll need to maintain your resolve. This is the time when the dealer will try to sell you bonuses and add things to the contract. They may try to sell you alloy wheels or other perks. But the biggest thing they usually try to push is an extended warranty.
Now, all new cars come with a manufacturer's warranty that's included in the price of the car. But an extended warranty is sold by the dealer to cover the cost of repairs and such after the manufacturer's warranty expires. You can buy this added coverage later on but it will be at a much higher premium than it would've been if you bought it when you bought the car.
An extended warranty might seem like a scam at first. After all, it's just throwing money at something that you may not even need. But if you're the kind of person that keeps a car for a very long time, making this upfront investment may not be such a bad idea. In fact, it could be the best decision you ever make because it'll save you money in the long run.
Of course, you need to know who is providing the warranty as well. Look into the company that backs it. If they have a less than stellar reputation, you may want to skip it. Likewise, don't make an impulse buy. If you can find an extended warranty through another company that is offered at a better rate than what you're initially offered, that's definitely something you want to consider.
Ask about what things are covered under this extended warranty as well. It may cover things that you have no use for or that doesn't really provide you with enough practical benefits to justify the costs.
Of course, if you plan on trading in the car when the manufacturer's warranty expires, you can skip the extended warranty altogether. Still, it's good to know what you might be in for.