When you think about an extended warranty for your car, it is like packing an umbrella to protect yourself from the rain. You could save your life or you can just add another item to your luggage. The cost of car repairs can be more than you expect, so these warranties are a great idea. Are these warranties really as important as they claim to? Read more.
Imagine yourself driving along in your car, when all of a sudden, your check-engine light begins to blink. Ugh. It’s not your problem if it’s covered under warranty. However, without one of these lights, you may find yourself out of pocket faster than “car repair” can be said.
We’ll talk about what warranties typically cover. Major components, such as the engine, transmission or even certain electrical systems, are often covered by these warranties. They rarely cover things that are subject to wear and tear like brakes or tire. You might be expecting too much if you think it will cover everything.
Could we please talk about the dough? Extended warranties are expensive. Some can even cost more than a used car! What about paying for something which may not be used at all? You know, it’s like buying Texas swampland.
The kicker is this: One of my friends paid for an extra warranty and complained all the time. A year later, his transmission went on an unplanned vacation. The warranty? It was all covered. He went quickly from skeptic, to advocate.
Also, there’s the sweet talk that many dealership salespeople use. The salespeople paint horrific pictures of engine failures and then tell horror stories of high repair costs. The stories are spun like fishermen boasting about a fish that escaped, to try and lure you in. They may not all have your interests in mind. Remember that it is their job to try and sell you the warranty.
And what about the customer reviews? You’ll need to be prepared, as navigating this landscape is like herding cat. Some people swear by extended warranties while others regret signing up. It’s often a matter of coverage and reputation.
Before you make a purchase, it’s worth doing some research. You can check the Better Business Bureau to see if any red-flags are present. You can also check online reviews. It’s like a treasure hunting. You can find patterns in feedback, such as people complaining about claims being denied or others raving about the service.
Take a look at this example. Sally from the next street did not opt for a warranty extension on her new, swanky SUV. Unfortunately, her engine failed. Her repair bill? A staggering five grand. She’s really kicking her self. Jake spent extra on an extended guarantee. When his air conditioning broke in the height of summer, he likely danced around a bit when he wasn’t required to pay for repairs.
An extended warranty can provide peace of mind and act as a financial safety net. But they’re not the perfect solution for everyone. Some would never spend the money because they prefer to take the risk. Some sleep better at nights knowing they are covered for the car’s equivalent of a bad day.
You should weigh up the pros and the cons before deciding whether or not you want to purchase an extended warranty. You’re spending your hard-earned cash, after all. You keep your umbrella close by, even if you never need it. You may prefer to gamble, whatever the outcome. You should feel comfortable in your car, no matter what you choose.