Is an Auto Extended Warranty Worth It? - A Comprehensive Guide

It's worth extending your warranty if your car isn't particularly reliable and you don't have the funds to cover major repairs. Learn more about auto extended warranties and how they can help protect your wallet.

Is an Auto Extended Warranty Worth It? - A Comprehensive Guide

It's worth extending your warranty if your car isn't particularly reliable and you don't have the funds to cover major repairs. If you buy a used car from a dealer, an extended warranty may be the right choice if you're uncertain of the vehicle's dependability. The business model of buying extended guarantees is not a low-margin one. There is enough money for everyone involved.

In fact, extended warranties offer much more profit in almost 90% of cases than those obtained with the item actually sold. Wear and tear has to be among the top three excuses that sellers give me when they try to sell me an extended warranty. Whether you have a used car or a new one, extended car warranties are worth it if you're worried about paying for major repairs. Purchasing an extended car warranty from CARCHEX eliminates this source of anxiety and safeguards your wallet against costly repairs.

The length of the warranty varies by manufacturer, but many offer full warranties of three years or 36,000 miles, whichever comes first. They generally last longer than full warranties and are usually cheaper, but they cover far fewer components. For example, CARCHEX allows drivers to take their vehicles to any authorized repair shop, while the car manufacturer's warranty normally requires that the car be taken to a specific dealer. For some, extended guarantees add up to a “tax” that adds up to 30% to almost all major purchases. There are several reasons why car warranties are worthwhile and that drivers are often unaware of before purchase.

These work in a similar way to extended warranties, since they cover the cost of mechanical repairs when needed.

Are Car Warranties Worth It?

If you're still wondering if car warranties are worth it, consult the car warranty experts at CARCHEX. CARCHEX makes car warranties worthwhile by offering five different coverage plans that fit the needs and budget of almost anyone. Vehicle warranties generally don't cover routine maintenance services or wear and tear items, such as brake pads and windshield wipers.

When Should You Buy an Extended Warranty?

In general, you must purchase an extended warranty from the manufacturer at the time you buy the car or before the factory warranty expires. With an extended warranty for cars, you don't have to worry about whether you'll be able to afford mechanical repairs once the factory warranty expires.

How Do You Know If an Extended Warranty Is Worth It?

If you want to buy an extended warranty, make sure you buy one from a company with a long history, such as through a car manufacturer, and that you understand the small print.

However, even with these averages, it's easier to know if it's worth extending the car's warranty. Understanding all of these factors can help you decide if an auto extended warranty is worth it for your vehicle.

Célia Peals
Célia Peals

General twitter advocate. Extreme tv enthusiast. Certified web buff. Certified bacon fanatic. Infuriatingly humble coffee fanatic. Hardcore zombie enthusiast.