Buying a Car: Are Extended Warranties Worth it?

It’s a hot debate with many people saying that extended car warranties simply aren’t worth the price. However, there are situations in which it really makes sense to go for the longer guarantee period, so beware of knee-jerk assumptions and take a look at your circumstances before deciding whether you’ll opt for this added layer of protection.

To make your decision, you need to look at the specific costs of extended warranties, what they cover, and what it might cost you if you aren’t covered. Honda extended warranty options illustrate this well. You can’t evaluate a product without knowing what it is, what it does, and what it costs.

If you don’t have any cash flow issues, can easily do without your car for a while, or rarely need to drive it, by all means skip thinking over the warranty question. If you fit the following categories, weigh your options carefully before reaching a decision.

Buying a Car

You Plan to Drive Your Car for a Long Time

Many people trade in their cars every couple of years. If this is you, you don’t need the extended warranty. You might look at how having one would affect resale value, but broadly speaking, you don’t need an extended warranty if the basic one keeps you covered for the period you plan to own a specific car. However, it’s more economical to drive your car for a longer time, and if you’re planning to keep yours for as long as possible, the added warranty period could come in handy.

You’ve Chosen a Model With High Repair Costs

Automobile technology is truly amazing – but the more tech your car has, the more likely it is to need specialists to repair it and the higher the cost. Luxury cars, as you’d expect, have more expensive components than ordinary family cars, and the price of spare parts can be chilling. Extended warranties are a monthly expense, but they cushion you against a need for expensive repairs. The cost of the warranty is predictable. The cost of possible repairs is not.

You’re on the Road a Lot and You Drive Long-Distance

“The pitcher that goes oftenest to the well is soonest broken,” is a saying that’s as old as the hills, but that absolutely fits this context. It’s simple logic. The more you drive your car, the greater the chance that something is going to break. If you’re a person that fits this criterion, you’re not only more likely to have a breakdown, but also more likely to be very dependent on having a working car. You might just want to play it safe by opting for an extended warranty.

Your Budget Can’t Withstand Sudden Shocks

If every “surprise” that upsets your budget leaves you horrified and unsure of how to weather the storm, it’s better to opt for the safe, predictable route. Let’s be honest here. If there weren’t potential profits in extended warranties, they wouldn’t be a viable product. However, if you can’t roll with the punches when a costly repair is needed, it’s genuinely worthwhile to buy the peace of mind. You may score. You may “lose.” But you do gain the confidence that comes with knowing you’ll be OK if your luck fails you and your car ends up needing an expensive overhaul.

Check Out the Specifics

Should you get an extended warranty? The answer depends on so many unique factors that there’s no simple “yes” or “no” response. It’s a decision only you can make and the answers depend on you, your car, and your driving habits. There are definitely arguments for and against extended warranties, think about how they might apply to you before making your judgement call.

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