Buying an extended car warranty

Buying an extended car warranty

  • Post author:
  • Post category:Blog

So you were looking at used cars for sale in Windsor, you did research, went on a couple of test drives, agreed on a sale price and now you’re finalizing paperwork. This is where you need to decide if you should purchase an extended warranty.

When you get right down to it, an extended warranty is really an extended service contract so you’re not out of pocket for any big-ticket repairs after your factory warranty expires. For some people, they simply offer peace of mind driving.

Extended warranties kick in only after the manufacturer’s bumper-to-bumper warranty expires. Most extended warranties cover major breakdowns and are designed specifically to help drivers offset the cost of repairs when necessary.

Obviously, extended warranties are an additional source of revenue for a dealership, but that doesn’t mean they aren’t good value for the money. Usually, an extended warranty can be purchased at any time before the manufacturer’s warranty runs out, and even after the initial warranty has expired, though buyers can expect to pay more when purchasing an extended warranty after the manufacturer’s warranty has expired.

That means you don’t have to make an immediate decision about extending the warranty before driving off the lot with a new car, though it might be beneficial in terms of cash flow to roll the cost into your existing finance contract.

Automotive experts suggest drivers consider if they intend to keep the car for a long time. If you drive cars until they can no longer make it down the block, an extended warranty makes sense. But if you plan to trade in a vehicle in three or four years and the manufacturer warranty has yet to expire, it can an unnecessary expense.

It’s also important to consider the cost of the extended warranty, which can range widely depending on the extent of the coverage you’re looking for. Of those who do purchase them, about half have to use them at some point, and of course, are quite relieved then to have decided to go ahead with the purchase.

If you’re willing to put in the effort, research breakdown rates and the general reliability of the vehicle make and model you are considering. New cars tend to be more reliable than pre-owned vehicles for sale in Ontario, so that’s another consideration. There are plenty of consumer watchgroups accessible online that can help you determine how your vehicle ranks in terms of reliability.

If you decide go ahead and buy an extended warranty, be sure it is backed by the automaker and not just the dealership or another company. You can use a manufacturer-backed extended warranty at any dealership across the country, while a third-party warranty might be good only at the dealership that sold it to you. Sometimes warranties require consumers to conduct just as much research as they did when choosing a vehicle.