When I was buying my first car, I said to myself, “Should I go for extended car warranties, as a used car is something I can afford for now.”
Over the years, the same question has been asked by my circle too. When you buy a new car it comes with a manufacturer’s warranty, covering the damages and repairs for the initial few years. Having an extended car warranty is a waste of money, as the manufacturer one covers almost everything.
But in case of used car buying, you should always check if the warranty by the manufacturer is valid or has expired. You can check it in Buyer’s Guide too. Cross-confirm with the dealer in case you cannot find the guide. If the warranty is still valid you need to pay a fee to transfer it under your name. Evaluate if it is worth it or not.
Even if the warranty by the manufacturer has expired you can buy an extended warranty from the dealer. As mostly dealers explain to you the horror of a damaged engine repair, you might be tempted to go for it. Here we will discuss the benefits and losses of car warranties.
You Can Keep Your Car
If you do not live in a country with tax rebates on new cars like Japan, changing a car can be a costly choice. And for few having the car that has become a partner in all journeys makes life hassle-free. As one can manage a car quiet well that has been there for quite some time. An extended warranty reduces the pressure to buy a car in an emergency as some issues might arise.
Save Money on Costly Repair
As the car gets old, so does the cost of repair; extended warranty gets you covered in case of costly repairs. Based on your previous repair history, decide if an extended warranty is worth it or not.
55% of the customer who bought warranty never used it((Consumer Reports))
So be careful while making this decision and have everything evaluated beforehand; and on paper.
Paper Work and Documentation
Some dealers take care of paperwork and documentation, so you just pay for the repair. They might help you in claiming manufacturer warranty or help you get the repair done at a discounted price, as they know the locality better, helping you find the best repair shop that charges right and give quality services.
As it is a warranty by the dealership; so it might be tailored protection especially for you. As dealers have relations with repair workshops, so you can have protection on your terms too. It is always good to have locality support, as the dealer might be someone you can easily approach as they are in your vicinity.
Do properly check the terms and conditions; as at times, dealer claims a lot. But when you go to them for repair, they tell you that because of certain conditions it is not covered. Many people have faced the issue, as they pray premium price in comparison to manufacturer warranty but do not even get discounts on costly repairs.