New Car Should You Invest In an Extended Warranty?
Are you in the market for a new car? Congratulations! The dealer will ask you all sorts of questions, including whether or not you want to buy an extended warranty. Know all the facts before you sign on the dotted line.
One of the questions you will be asked about when you hit the finance office is an extended warranty. Let’s begin by talking about what a warranty is and how it can or cannot be useful.
A warranty is like a guarantee. It comes with everything from washing machines to curling irons. Basically, for a certain amount of time, if there are any problems with your purchased product, you can have it fixed or replaced.
Cars come with warranties to. You’ve heard them: “5 years or 50,000 miles,” “100,000 mile power-train warranty.” The engineering of cars has gotten a lot better, often negating the need for an extended warranty on a new car.
Check out the warranty being offered on your car by the dealer. Most warranties cover the major parts of the car: power-train and transmission, for example. For a car just off the showroom floor, there is less likely to be anything wrong with these parts for some time. If it is, it is likely to be covered by a recall and then it will be fixed for free.
Think about the type of car that you are purchasing. Most of us do our due diligence before going to the dealer anyway. For a car make that has a reliable track record, an extended warranty is not necessarily needed.
Read the wording of the extended warranty before you buy. Some warranties are only valid if repairs are performed at a certain shop. This won’t work well if you are on vacation and in another state.
Also read about the deductible. You don’t want to end up paying for your own repairs because the deductible is so high. What you ideally want is a warranty that states that you pay a deductible per visit and not per repair. Per repair means that you will be billed a deductible for every part they have to replace. Per visit means that they can totally overhaul the car and you will only be charged one time.
Do you need an extended warranty? On a new car it is unlikely. Unless you plan on keeping the car until the wheels fall off, you will still have enough of the original warranty when you sell it. Be sure to check out all of the great deals you can get at Kayser Chrysler Center!