Should I Buy an Extended Warranty?

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If you're asking yourself the question, should I buy an extended warranty? you're not alone. Many drivers have a hard time knowing when they should be purchasing coverage for their cars and if the investment will be worth it. Read on to learn how you can answer this question for yourself.

Should I Purchase an Extended Warranty?

Are you in a position to drop a lot of cash on a single repair? A recent survey found that 89% of cars on the road are still being driven while needing at least one repair, and most Americans say they can't afford it when the big bills arrive.

Though new cars hold up better than used, all car owners will encounter that costly, unexpected repair bill at some point. An extended warranty can help offset those costs.

Here are other factors to think about as you consider buying an extended warranty:

  • Looking to sell your car? Extended warranties can increase your car's resale value.
  • Benefits like roadside assistance and trip interruption services are offered through some extended warranties.
  • An extended warranty from the dealership is not your only option. Auto warranty companies like CARCHEX provide plans that offer more flexibility in auto repair shops, car parts, and more.
  • Extended warranties prevent costly repairs from hanging over your head. You can rest assured knowing that you can pay for repairs when you need them. 

Is Buying an Extended Warranty Worth the Money?

Consumer Reports says that in 2016, 84% of extended warranty owners had all of their claims honored, and 82% said they'd buy one again.

So what does an extended warranty cost? It depends on your provider, protection plan, and vehicle. Paying smaller monthly payments through an extended warranty may be easier than affording an expensive repair bill all at once. If your car make and model is known to have a certain repair at a particular mileage, you can compare the costs and make an informed decision.

Simply think about the kind of person you are. Not a fan of surprises? If you like the peace of mind that comes with knowing that you're covered when something unexpected happens, an extended warranty fits your needs.

What to Know Before Buying an Extended Warranty

Protecting your car is important. That's why it's smart to do some homework before buying an extended warranty.

Keep these things in mind:

  • Know the Benefits of Extended Warranties
    • New cars come with manufacturer warranties, but an extended warranty can cover the costs that factory warranties do not.
    • Extended warranties can cover roadside assistance, towing, and car rental costs when your vehicle is in the shop.
    • Remember that even a new factory warranty will expire. Buying an extended warranty will ensure your car is protected as it ages and needs more repairs.
  • Beware of Scams
    • Not all extended warranty companies are created equal. Some may try to scam you. Check rankings from Consumer Reports and the Better Business Bureau before you call anyone.
  • Know the Condition of Your Car
    • How old is my car?
    • How long do I plan to keep it?
    • Do I know the repair history on it?

When Is the Best Time to Buy an Extended Warranty?

Choosing the right time to purchase an extended warranty may save you money down the road. An extended warranty begins after the bumper-to-bumper manufacturer warranty expires. You can decide to purchase an extended warranty the day you buy the car. You also have the option to hold off until later, but it's important to know that the price usually increases if you wait until your original warranty expires.

Tips for Finding the Best Extended Warranty

If you're ready to buy an extended car warranty, here are a few tips to help you navigate the process:

  • Don't Ignore the Fine Print
    It may seem obvious, but most people don't really take the time to read exactly what their contract says. Don't blindly sign—know your plan and ask plenty of questions.
  • Think Long Term 
    Eventually, all cars will run into trouble. Thinking about your long-term plan is best when warranty shopping. After all, cars are far more likely to experience problems as they age.
  • Don't Go Only Halfway
    You won't find much of difference in price when considering the various levels of coverage. Why not make sure you're covered? For a few more dollars, you could see huge savings and a long list of benefits.

Still not sure if you should buy an extended warranty? Luckily, the vehicle protection specialists at CARCHEX are here to help.

Extended Warranty Options from CARCHEX

Our industry-leading extended vehicle protection plans are affordable, flexible, and offered in five different coverage levels: Titanium, Platinum, Gold, Silver, and Bronze. 

comparison-of-carchex-warranty-plans

All of our extended warranties include these additional benefits:

  • 24/7 roadside assistance
  • Trip interruption services
  • Gas delivery
  • Towing
  • Rental cars

Not sure which plan is right for you? Our auto warranty and insurance experts at CARCHEX are here to help you make the best decision for your unique needs. We pledge Customer Experience Above All when you look to us for an extended warranty.

A+ Experience with CARCHEX

Knowing who you can trust will help you answer the question, should I buy an extended warranty? Speaking to knowledgeable representatives from a reputable company can show you how much money you can save with an extended warranty.

CARCHEX has an A+ rating from the Better Business Bureau (BBB) and a long list of industry endorsements. CARCHEX uses a consultative approach to offer you the best pricing and a variety of protection plans to suit your needs.

Call a CARCHEX specialist at 866-261-3457 to see if you should buy an extended warranty.

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SOURCES:

CarCare.org: http://www.carcare.org/car-care-service-schedules/general-service-schedule/

Bankrate: http://www.bankrate.com/finance/auto/straight-talk-on-extended-warranties-1.aspx

Edmunds.com: https://www.edmunds.com/auto-warranty/five-questions-to-ask-before-you-say-yes-to-an-extended-warranty.html

Consumer Reports: http://www.consumerreports.org/cro/magazine/2014/04/extended-warranties-for-cars-are-an-expensive-game/index.htm

Consumer Reports: http://www.consumerreports.org/used-car-buying/when-an-extended-car-warranty-is-worth-it/

Edmunds.com: https://www.edmunds.com/auto-warranty/five-questions-to-ask-before-you-say-yes-to-an-extended-warranty.html">https://www.edmunds.com/auto-warranty/five-questions-to-ask-before-you-say-yes-to-an-extended-warranty.html

Better Business Bureau: https://www.bbb.org/greater-maryland/business-reviews/extended-warranty-contract-service-companies/carchex-in-hunt-valley-md-23015869

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