You just bought your new car, and although you’ve already forked out a large sum of money, and likely a payment plan, the salesman will try to push a warranty on you for extra protection. Having the peace of mind incase of a car accident is no doubt helpful, but is it worth it? Should you get an added on warranty along with the factory-included one? Let’s weigh the pros and cons.
Included Warranties / Powertrain Warranties
New cars will come with factory warranties backed by the car manufacturer. These stay in-place for at least 3 years or 36,000 miles – whatever comes first. This bumper-to-bumper warranty covers repair cost on everything except general wear and tear on brake pads, tires, and windshield wipers. It doesn’t cover maintenance cost on maintaining tire rotations and oil changes.
A powertrain warranty is also included on most new cars. This covers the cost of repair on more expensive items like the cars transmission, engine, and suspension. It’s best to review everything your warranty has to offer before making a decision. For example, Endurance coverage covers drive axle damage, engines, seals and gadgets, and transmission repair. Check out this page for a review of their coverage.
When shopping, you may notice that some brands cover more for longer, for example, Chevrolet. Toyota and Honda have shorter warranties because their brand is known for reliability.
Extended Warranties
An extended warranty will extend the warranty you’ve already purchased from the dealership. Depending on which car you buy, the bumper-to-bumper warranty can extended by 20,000 miles or more. Some warranties will bundle coverage like a silver or platinum plan or a free rental car.
Third-party warranties have been sold by dealerships in the past. These are fine to purchase, but be aware that these warranties aren’t covered or connected to the car maker. These warranties could make you pay out of pocket for repairs and then you’ll need to apply for reimbursement. It’s always better to get a warranty directly from the car manufacturer, but sites Find Reviews can help you weigh up the pros and cons of the various available options.
Is a New Car Warranty Worth It?
If you keep regular maintenance on your car, you likely won’t need the warranty. However, no matter how careful you are as a driver, you can’t control the other people on the road. You also have to consider whether or not the car is likely to break down. There have been some instances where an engine fails right out of the lot, and there is no way to prove that this was a manufacturer issue.
Getting an extended warranty is also expensive over-time. Warranties are listed under your loan payments as an extra monthly payment, but adding up the numbers shows a big increase in the total you’ll pay for the loan. Car salesman will treat an extended warranty as a way to “protect your investment” but the truth is, your investment decreases value as soon as it’s bought.
Carmakers may offer other warranties, like roadside assistance, rust or corrosion, and federal emissions. These may be more useful to you, so ask about them before you purchase your new car.
Is a Used Car Warranty Worth It?
Used cars are more likely to break down – especially if you buy them from another person or in a shady used car lot. Another option is to buy a used car at a dealership, and in this case the salesman will try to sell you a used warranty. It’s still possible to get an extended warranty on these cars, as well as a factory warranty from cars bought elsewhere. Just call the manufacturer and see if they offer one.
When in Doubt, Buy Later
If you decide a warranty isn’t worth it, you can buy an extended warranty at any point before the included factory warranty expires. You can do this on all cars, but the sales associate will leave that information out so you purchase it immediately. This way, you can drive the car around for a few years to see if it’s reliable enough to even need that extra warranty.
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