3 Things You Should Know About Car Extended Warranties

Are car extended warranties worth the cost? The answer depends on what type of person you are in regard to auto maintenance.

For example, you may prefer to address your car’s performance issues as they occur. In this case, it’s not worth it to get an extended warranty for your car. You may find that, when you need it, your extended warranty doesn’t cover your particular needs.

Alternatively, you may be more proactive in your auto maintenance. You might, for instance, repair or replace parts according to a strict maintenance schedule.

If so, extended warranties for cars could benefit you after all. Simply make sure ahead of time that your maintenance schedule adheres to the conditions of your extended warranty.

Now don’t worry. We realize that this short answer is a bit confusing.

To help you truly understand, we’ve written the full explanation below. Read on to learn more.

  1. It May Cost More Than It’s Worth

According to Consumer Reports, extended car warranties save consumers an average of $837 each. But they cost an average of $1,214 in the first place. In other words, these warranties usually cost $375 more than they save.

However, “average” doesn’t mean “you.” More to the point, you may be worried about bad luck.

That is, what if your car happens to need repairs far more often than the average vehicle? In that situation, you’d need a lemon law attorney, not an extended car warranty.

  1. The Price Is Negotiable

Furthermore, like the price of your car, the price of an extended warranty is negotiable. So, you can haggle a few hundred dollars off of the price when you purchase it. That way, you’re less likely to lose the average $375 on the overall cost.

Also, you don’t have to get your extended warranty from the same people who sell you the vehicle. You can shop around until you find a more agreeable price.

  1. You Probably Won’t Use It

Lastly, the Consumer Reports survey mentioned above also reveals that 55% of car owners never use their extended warranty. For these unfortunate consumers, the entire cost of the warranty goes to waste.

So, then, what’s the bottom line? If you’re contract-savvy and good at haggling, you can definitely take advantage of an extended car warranty. Alternatively, the other methods for managing car repairs are acceptable, too.

Should You Get Car Extended Warranties?

The real answer is, choose the method that seems easiest to you. And, if you do choose to get car extended warranties, be sure to haggle the price down.

In the meantime, use this guide to make an informed decision. Also, please share this guide with anyone who could benefit from this knowledge.

Next, you may be wondering, are performance brakes worth the money? And what factors should you consider when buying a UTV? Find the answers to these and other important questions on our Auto blog.