Top 5 reasons to buy an extended warranty
1. You plan to keep the car past the manufactures warranty
2. You drive your car a lot (more than the standard 12,000 miles per year)
3. You purchased an expensive car that has high repair costs
4. You want the peace of mind of knowing you are covered
5. You’re not good at keeping up on your routine maintenance
You plan to keep the car past the manufactures warranty
If you are like a lot of drivers these days and you plan to keep your car for 6-10 years or longer, an extended warranty may be just what the doctor ordered. More and more Americans are driving their cars longer. In the past 10 years car quality has gone up on both domestic and imports. However, after you have gone some time without a car payment, you don’t want to be riddled with big repair bills and an extended warranty maybe just the investment you need to hedge your losses on repair bills.
You drive your car a lot (more than the standard 12,000 miles per year)
If you are a road warrior, you have a hefty commute, or if you are just constantly on the go — an extended warranty may be in your future. You will not get the full benefit of the auto manufactures warranty. You won’t get 3, 4, or 5 years of the manufactures bumper-to-bumper coverage. You are lucky you may get two or three years of the manufactures warranty coverage tops. You are very likely to have to pay both car payments and repair bills at the same time on a relatively new car. If you are driving your car more than twenty-thousand miles a year it can be in your best interest to seriously consider an extended warranty.
You purchased an expensive car that has high repair costs
If you just purchased or are planning to purchase your dream machine, then you are likely a good candidate for an extended warranty. Dream machines drive like a dream, however the repair cost associated with owning that luxury beast could become a nightmare. If your basic subcompact sedan needs some replacement parts, you may have to delay drinks with your buddies until the next payday. However, the high-line luxury vehicle could set you back a mortgage payment or more. When buying a car we recommend you assess your total cost of ownership which includes repair costs. When you shop for an extended warranty for a luxury car make sure you investigate the coverage limits and deductibles, not just the cost of the plan.
You want peace of mind of knowing you are covered
There is a reason we buy insurance. More important there is a reason we buy more than minimum coverage (when we can afford it). Owning a car is fun. We love our cars. They take us to the places where we develop life long memories. For some of us, our cars are a part of our life long memories. The fact is that a car, truck, SUV, or minivan is a mechanical device with moving parts that at some point in time will fail… in some shape, form or fashion. Buying an extended warranty offers us the peace of mind that we will be able to mitigate our losses in the event of a mechanical failure.
You’re not good at keeping up on your routine maintenance
If you are like most people you are not good at keeping up with your routine maintenance. An old mechanic friend of mine told me a long time ago. ”There are two reasons why my business continues to grow.” Number one: “Do it yourselfers” don’t know what they don’t know. Number two: Many people just gas and go. If you fall into either of those camps, meaning you are someone that inflicts wounds on his/her own car by trying to self medicate or you ignore the warning light and try to tough it out until there is a breakdown — an extended warranty may be in your future.
The long and short
Let’s face it, problems can arise with any vehicle… even the most reliable. This is a fact that all new car owners should come to grips with. Many of us are not good at keeping up with our maintenance, and as a result we run a greater risk of encountering an expensive repair. Examine your driving habits and maintenance history. Also consider how long you intend to keep your vehicle. Knowing who you are as a car owner will make the decision to buy an extended warranty a lot easier.