Buying a car is a really important event for a lot of us, and chances are, we worked really hard to get it. Parting with so much money at once, all while hoping we made the right choice of make and model, can be very stressful. On the lot or in the office, dealers might entice us with an extended factory warranty. What is this, and will it help us feel more confident in our purchase?
Are Extended Warranties Really Worth It?
Extended warranties cover costs associated with the repair of your car beyond the standard warranty. How they vary from that standard warranty will depend on what type of vehicle it is and where you buy it.
Oftentimes, the extended warranty isn’t as inclusive as the initial warranty, since they’re typically not what we call “bumper-to-bumper”. That first bumper-to-bumper warranty will be in effect for a few years or for a certain number of miles, and cover the cost of repairing almost anything.
Components such as brake pads, tires, and windshield wipers are often excluded. On the whole, however, it does a thorough job of making sure your first few years with a car aren’t mired by costly repairs.
After that expires, if you’re looking into, for instance, an Audi factory extended warranty, the terms may be different. Or, you may have a choice as to what you want your extended coverage to include. Many factories will let you customize an extended warranty to cover your car more comprehensively.
That comprehensive coverage usually comes with a higher price tag. The bottom line for many is that if they take advantage of their first bumper-to-bumper warranty, extending that coverage is worth it.
Otherwise, you may ask and see if a less-comprehensive, more budget-friendly extension is available.
Do You Need an Extended Warranty?
According to a 2014 survey conducted by Consumer Reports, more than half of people who purchased an extended warranty didn’t even use it. That still leaves nearly half who did, and those are the people who likely asked themselves some important questions.
The first question is, “Who is offering the extended warranty?” Many who get extended warranties from third parties find that the cost compared to the kind of coverage they get isn’t really worth it. An extended factory warranty offered the company who made the car can be more reliable.
You also have to go back and question your behavior with cars. If you’re really rough on vehicles, get spooked by odd noises under the hood, or feel you have “bad luck” with cars, you might want that extended coverage. Compare the components covered by that extended warranty with your personal history having to fix (or not fix) those areas of a car.
At the end of the day, many people will go for the warranty because it just makes them feel more secure behind the wheel, and there’s nothing wrong with that. No one can say for sure what will happen five or seven years down the road, but one thing’s for sure – we’d like to stay on it. Before you buy, ask what your extended factory warranty covers and costs.
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