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Should You Choose Extended Auto Warranty at the Extra Cost?

What is an Extended Warranty?

Most dealers offer car buyers the option of paying for Auto Warranty Coverage. Generally, this warranty is beyond the manufacturer’s coverage. For example -the bumper-to-bumper warranty comes with the car and covers the expense of repairing most damages. Such extended warranty gives safety of a certain number of years or miles, whichever comes first. Basically, a common new-car warranty period is -three years or 36,000 miles, and the extended warranty kicks-in when the manufacturer’s warranty ends.

Wisely Choose Your Dealer

Researching before sitting in the hot seat in front of a dealer’s finance person could be wise work. Price of most auto warranty contracts reaches up to $2000. Though you may pay more if you buy it later, be aware that you don’t have to buy it at the time of purchase of the vehicle itself.

Contract’s Fine Print

Most studies show that extended warranties often come with inclusions which may be dubious for a new time buyer while the exclusions are described or may not be described in a contract’s fine print. So, if you’re considering a service contract, take the time to actually read it, and make sure what is covered and what is not. Most manufacturers offer different levels of service such as insurance cover, replacement, and repair. If the warranty doesn’t cover the level of service, they will charge you for that, even if you have a contract.

What is the Best Option?

Most of the survey has found that Auto Warranty backed by the manufacturer, as opposed to those offered by a separate, or third-party, enterprise, are the best overall option. Make sure you understand what is covered and all other important details, no matter who’s offering the warranty product.


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