Is a car’s extended warranty worth it?

That’s an important question that many people ask when they are sitting at a car dealership deciding on whether or not paying out the extra cash for the warranty is worth it. While the extra money spent on an extended warranty might make you think twice about paying for it, the truth is that a warranty is almost always well worth it. Even if you never end up using it, which is unlikely,
the peace of mind you get from having a car that is protected by an extended warranty is worth the cost alone. When you have an extended warranty on your car you don’t have to worry about it breaking down on you. That means that you can take a road trip and not really be concerned that a car you depend on for work and personal commitments could end up breaking down on you.
If you are buying a new car then it is going to come with a manufacturers warranty that will cover some of the basic repairs for a set period of time. What you have to remember is that rarely will a warranty of this nature be a true bumper to bumper warranty that covers everything that could break on a car. You also have to keep in mind that a manufacturers warranty will also very rarely cover your car for the length of your loan. That means that you could conceivably have to make monthly car payments while paying out of pocket for expensive repairs.
Getting a car’s extended warranty on a used car is also something that is very important to do. Most used car dealers will offer you a warranty on your car, but this warranty is typically very limited and will only last for a very short period of time. While the amount of money you borrow for a used car is less in most cases, and the payments are lower, that still doesn’t mean that it won’t sting if you have to pay out of pocket for an expensive repair while still making car payments.
If you still aren’t convinced that getting an extended warranty on your car is a good idea, take a moment to think about just how much money major repairs can cost you. Having to replace an engine or transmission will run you several thousand dollars. Even less extensive repairs such as a damaged electrical system or car computer can also run in the range of a thousand dollars or more. The point here is that a major repair is going to cost you more money than what you pay for your warranty. What happens if you have to replace your car’s engine, then later on the transmission goes out? Then suddenly you are paying more money for repairs than your car warranty would have cost you.
The most important factor you need to keep in mind when deciding whether or not an extended car warranty is worth it is the fact that it’s not a matter of if your car breaks down, it’s a matter of when it breaks down. Your car is a machine, and like all other machines, it’s only a matter of time before something breaks on it. What you have to decide is if you want to be proactive by getting an extended warranty, or if you want to be reactive and get stuck with a big auto repair bill.