Department | New Car Loans

Why You Don’t Need an Extended Warranty

1. Extended Warranties Often Cost More than You Could Save

Simple prudence and self-determination to take the money you would pay on an extended warranty and put it in a good interest-bearing account for the years that your regular warranty is in effect will enable you to pay for most typical repairs that your car may need after it expires. This exercise in savings can not only serve as your self-maintenance, self-paying warranty, but also as a good emergency fund for other needs that may arise in your life if you lack other savings.

2. Extended Warranties Often Have Hidden Costs

Between the premiums and deductibles most warranties require and the hidden limitations on coverage, you could find yourself shelling out more than you expect in order to get the repair you need for your car. Some warranties even go so far as to tell you where you have to get the repairs to your car done. With these kinds of limitations - some of which are only discoverable if you’ve got the iron will of an attorney for reading contracts - many find that they would have been better off just saving for a repair or putting the cost on credit.

3. A Little Research Goes a Long Way

Knowing your automobile before you purchase it could save you the need for extended warranties in the first place. Face it, some cars are made lemons and others are made jewels, and there are plenty of online review sites, articles, and blogs that talk about the various cars and car types on the market where you can learn first-hand which cars are great, and which ones are likely to need an extended warranty. Smart shopping from the get-go can go a very long way to eliminating the odds that you’d ever use an extended warranty.