5 Things To Consider Before Signing Up For An Extended Warranty

Deciding whether or not you will go for an extended warranty on your car shouldn’t be a snap decision.

Several factors play into the advisability of opting for one, and should you decide to go ahead, choosing the best-extended car warranty also requires diligence on your part.

Top 5 Things To Consider Before Signing up for an Extended Warranty

While your circumstances might mean that you need to take a few extra factors into account, this basic list should help you to get started with your deliberations.

Overview:

1. Is it an Expensive Car?

Auto repairs are seldom cheap, but the more expensive your car is, and the higher the tech it can boast, the more likely it is that the components, equipment, and expertise needed to repair it will come with a high price tag.

Simply plugging in a BMW for the general diagnosis, for example, is likely to cost upwards of $110 – and that’s just to find out what’s wrong with it! Not a single repair has happened yet.

2. How Much Will You Drive It?

The more you drive your car, and the further you drive it, the greater the odds of your experiencing a breakdown.

As your car ages and passes its factory warranty date, the cost of repairs will fall to you – unless you have an extended warranty.

If your car spends much of its life parked in your garage with just short trips in between, your chances of wear and tear leading to a failure are reduced. 

3. How Long Do You Plan to Own it?

If you like driving the latest model cars and are very likely to trade your vehicle in before the normal warranty reaches its due date, there’s not much point in getting an extended warranty.

However, we live in tough times. Keeping your car for longer, paying down the installments, and enjoying some debt-free time between purchases is a great way to save money on car ownership and might appeal to you more.

4. Can Your Budget Stand an Expensive Repair?

Extended warranties can be seen as insurance policies that cover the cost of car repairs.

Although you might never experience an issue that you can’t deal with, your insurance is there when you encounter one you’d struggle to cope with using your own resources.

Ask yourself what the consequence of a costly breakdown would be for you. If you can take it in your stride, you might decide that an extended warranty isn’t worth your while after all.

If a large repair bill would be in the nature of a disaster for you, you need that warranty.

5. What’s the Deal?

There are multiple extended car warranty options out there and the deal you get will depend on the warranty you choose.

Don’t just assume that they’re all equal and just grab the cheapest one. Go through the agreements you might sign up for with an eye to identifying the right kind of protection for four circumstances.

Consider worst-case scenarios and see how the offers stack up against these. Look into the service provider’s BBB rating.

With all bases covered, you can hope to get coverage that buys you peace of mind and a happy motoring future.

Additionals:

• Questions To Ask A Vendor Of A Used Car
• Why Are Electric Cars Faster Than Traditional Ones?
• The 2 Best Ways To Save Money When Owning A Car
• Someone Borrows My Car And Crashed It: What To Do?