Extended Auto Warranties: Do You Need One?

So, you’ve finally chosen your next (or first) car and are ready to sign the paperwork. But then the car dealership starts to discuss extended auto warranties and asks if you’d like to have it for added protection for your vehicle.  Should you say yes or no?

Well, first it’s important to understand what an extended warranty is. Also known as a service contract or protection plan,  it will cover repairs on your car after its original warranty expires. Keep in mind that it won’t cover things such as oil changes or new brake pads. So, should you get an extended auto warranty? Here are some important questions to ask yourself to help you decide.

How Important Is Peace Of Mind?

When it comes to protecting your vehicle, auto warranties provide peace of mind more than anything else. You may never get into an accident or experience a situation that requires extensive repairs. But life is unpredictable. And if you aren’t willing to take any risks, then an extended auto warranty may be a good choice. This is especially applicable for those buying a used car, as their original auto warranty may be close to expiring. Whether used or new, however, if you plan on keeping your car for more than 6 years, extended auto warranties may be worth considering.

Pay Up Front Now Or Out Of Pocket Later?

Extended auto warranties can cost several hundred to over a thousand dollars. And this may seem like a lot to pay right away. However, repairs on your vehicle can easily go into the thousands. If you don’t have an emergency fund for situations like this, getting an extended warranty could be in your best interest.

Are You Still Willing To Pay Deductibles?

Much like insurance, the majority of auto warranties usually require a deductible if you use it. And while most of your car repairs could be covered, remember that you can still come out of pocket for some of the costs. Are there extended auto warranties that don’t require deductibles? There most certainly are. But this perk comes at a price and your warranty will surely cost you more to purchase as a result.

Shop Smart For Extended Auto Warranties

So, if you have decided that extended auto warranties are the right move for you, remember to shop around to compare offers. Some warranties work in years, others by mileage. Some require deductibles, some don’t. Also look at exactly what repairs the contract includes, so you can be prepared to pay for repairs not covered. Finally, see if the warranty is transferable, in case you decide to sell or give it to a friend or relative.

Here at BlueSky, we can connect you to a variety of specialists who can help you compare extended auto warranties for the best deal. Visit us online today to get started!

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