It’s hard to believe that buying a car is only the beginning. The hidden costs of insurance, repairs and maintenance become apparent. It’s then that you realize–you have a new set ears and eyes. You’re right, extended car warranties. Are they worth it, or just another way of stealing your hard-earned cash? Get details.
First of all, who hasn’t heard the phrase “peace and mind” when it comes to an extended warranty? How much does peace-of-mind cost these days? It would seem that peace of mind costs quite a lot! People who are willing to take the risk often wonder if it is worth the cost or if it is just a bunch of fluff.
It’s understandable that you would think “I own a nice car. Why do I need a guarantee?”. The kicker is that cars can be finicky. Not quite as finicky as your aunt Sue’s pet cat, but pretty close. Even the most expensive of wheels can fail unexpectedly. The extended warranty is a safety measure that you can use to protect your car.
Different strokes for different folks. Some people swear by them and others discard them like they’re last year’s fashion. Jim, my neighbour, is a good example. He purchased an extended warranty to cover his used SUV. In the past two years, he’s experienced transmission problems, electrical glitches, and a broken air conditioner. The warranty saved him thousands of dollars. It saved him a lot of money.
Remember Nancy, the member of book club on the other side? She paid dearly for an extended guarantee on her new car. Not a single issue after three years. Nada. Zip. She was furious, feeling as if she had given her money to a modern day snake oil seller.
What about the stories? How can you find the best one? Read the real, raw reviews from users. Avoid testimonials that have been manipulated by marketers. Reddit, auto blogs and customer complaint forums can help you go beyond the facade.
Understand the nitty gritty. Some warranties cover everything, except for your morning cup of coffee. Other warranties only cover the engine and transmission. Each is unique. One will cover the labor and another won’t. Some are geared toward high-mileage automobiles, while others avoid them. You have to find out what works for you.
Beware high-pressure tactics. You’ve probably felt the same way at a car dealer. Limited time offer, “once in lifetime deal”, the whole nine yard. They want to make your decision right there and then. Don’t. You should instead sleep on the decision, compare online offers, and browse third-party providers.
When it comes to third-party service providers, there’s a wide range of them. Some third-party providers are reputable lifesavers; others are sneaky rascals. Your best friend is research. Online reviews can provide a wealth of information. Be aware of terms and conditions which could make your life difficult.
Ask your family and friends about their experiences. Advice from reliable sources will save you from buying a lemon. You shouldn’t disregard professional opinion either. You can ask mechanics which companies offer generous warranties and which don’t.
Some brands are more reliable. Toyota is one example. In the past, Toyota has been rated highly for reliability. An extended warranty may not have much added value. Repair costs for certain European brands can be so expensive that they will make your wallet cry. Here’s where warranties shine.
Read the fine print. Every. Single. Word. This can save you from unpleasant situations down the road. The coverage often has exclusions and you don’t need to be caught in the dark if your repair isn’t covered.
Let’s not go on and on about extended warranties for cars. Bottom line: Do your research and follow your instincts. The research you do could be the difference between a lifesaver and a financial disaster.
Was it money spent well or was it just an expense? Who knows until you’re in the midst of car trouble or are cruising along with no clouds ahead. Stay savvy, and keep the conversation flowing.