When buying a vehicle, many customers don’t necessarily consider the importance and value of an extended warranty. Fortunately, it’s simpler than it sounds and might be more of a no-brainer than you think.
Every new car comes with a factory warranty and even used cars may have their factory warranty intact at the time of purchase. However, you’ll likely be asked if you’d like to purchase an extended warranty before grabbing the keys to your shiny new vehicle. Though these can differ by dealership, many extended warranties are also fulfilled by the manufacturer of the vehicle. As with all purchases, reading the fine print is recommended so you know exactly what you’re getting.
Many critics have made mathematical arguments both for and against buying car warranties. But the truth of the matter is, a warranty can save you more than just money.
Let’s face it, no one plans on their vehicle breaking down. Even if you’re a perfect driver, you could be faced with serious issues with your vehicle you weren’t even aware could happen. These are stressful situations, and you don’t want to be thinking about the money you have to spend on top of everything else.
With a warranty, you get that peace of mind. The stress and uncertainty that can come from vehicle problems usually aren’t worth the amount of money you could save otherwise. And in these cases, it’s at least just as likely that you’d be losing more money without a warranty, anyway.
Some have argued that you could save the money you’d spend on a warranty and use that to cover repairs instead. This could technically be true, but again, it assumes that your cost of repairs will be lower than what you paid on the warranty until that point. It’s also an extra hassle on your end. It’s hard enough to manage bills and day-to-day spending, and the last thing you need is an essential repair that you forgot to keep saving for.
Another reason why buying a warranty is a great idea is the complexity of modern vehicles. Software is ingrained in nearly every part of a modern vehicle, and when something goes wrong, the expenses aren’t in the hundreds of dollars, they’re in the thousands (or more). The same technology that makes vehicles amazing to drive can make things significantly more financially burdensome when something goes wrong.
A final point to consider is that a warranty can add value to your vehicle if you wind up selling it early. You do have to make sure the warranty is transferable in these cases, but if it is, your vehicle will have an edge over other similar cars on the market. Alternatively, a transferable warranty means any children or relatives who inherit your vehicle can also reap the benefits of it for the remainder of the contract. In other words, you could be saving them money down the line as well.
Though some will debate whether a warranty is likely to save you money in the long run, a warranty is more than what you pay for. It’s peace of mind that your car will be taken care of in the future, regardless of the money in your bank account or the stress you’re otherwise dealing with in life. If that sounds worthwhile to you, then consider getting a warranty with your vehicle.