There are a lot of differing opinions on the advisability of getting an extended warranty for your new car. In case you aren’t familiar with the term, a new car comes with a set warranty period. An extended warranty is one that covers a longer period, and since cars are more likely to break down as time passes, it’s worth thinking the question through carefully. These are the top reasons why many folks decide to accept the additional cost of an extended warranty on their new cars.
1. Repairs Could be Very Expensive
If you’re buying a luxury car like a Mercedes, Lexus, or BMW, the cost of replacement parts is likely to be very high. A BMW 328i cylinder head could cost upwards of $11K, for example. While you’re fairly confident that your vehicle will be reliable, you’re concerned about the cost of covering any major repairs it might need once the regular warranty expires. To eliminate this uncertainty, you may decide that finding the best extended car warranty for your car’s make and model is the best solution. It may even save you money in the long run.
2. You’re Likely to Rack up a Lot of Mileage
The longer the distances you’re likely to cover in your new car, the greater the wear and tear on components. If you’re going to be getting a lot of mileage out of your car within a relatively short time frame, you’re more likely to experience mechanical failure. Because of your increased risk profile, you decide that getting an extended warranty is the best solution. Your car may be new, but given the distances you’re likely to drive, it will “age” faster.
3. An Extended Warranty is Predictable and Affordable
You don’t like uncertainty. A large auto repair bill will place you in an awkward position, and you’d prefer the predictability of an extended warranty. It’s an additional monthly cost that you will pay even when your car is running reliably, but you think it’s worth being able to budget for repairs monthly instead of just taking your chances and hoping for the best.
4. There are Extra Benefits You May Need
Depending on the car warranty package you choose, there may be extra benefits that you’ll be thankful for in an emergency. For example, some packages offer roadside assistance, will reimburse you if you need to hire a rental car while your own vehicle is repaired, and will cover the remarkably high cost of towing if you need it. If you’re stranded, benefits such as coverage for meals and accommodation add to the attractiveness of some extended warranty offers.
Choosing a Warranty
Most of us are familiar with extended warranties from car dealerships. However, they aren’t the only options out there. Before signing on the dotted line, compare offers – not only their costs, but also their coverage and the reputations of the companies offering them. You might well find a highly rated package that’s much more competitive and flexible than the one your dealership is willing to offer.