Extended Auto Warranties: Pros and Cons

Extended Auto Warranties: Pros and Cons

Extended Auto Warranties: Pros and Cons

Extended auto warranties are an excellent form of "insurance" for your car. If you buy a car and can't afford to pay for expensive repairs, it can be an excellent purchase. There are many pros and cons to purchasing extended auto warranties that we will go over shortly.

Pros :

The pros of an extended auto warranty are quite substantial. Most cars cost over 25,000 dollars and that is a huge investment. You will want to protect this investment in any way you can. For example, having auto insurance is protecting your investment. If you are going to purchase a car for a large amount of money, you want to make sure that you don't have to pay huge repair fees in addition to this. The extended auto warranty can be a huge help.

When buying an automobile, most automobile makers have a warranty program. You will usually have a 3 year or a 50,000 mile warranty or something similar. Normally, your car will be paid off by the time the warranty ends. You need to decide if you should shell out money for an extended warranty or simply "risk it" and figure maybe your car will break down, but maybe it will not. It's like health insurance. You pay for it "just in case" something medically devastating happens to you, although there may never be a medical problem.

Cons:

The cons of this are that perhaps nothing well ever go wrong with your car. You may never need a costly repair or to use the extended auto warranty. If you would rather put the money into your bank account and save it for a rainy day, then you can. You may or may not ever need to use it to fix your vehicle. You may have a medical emergency one day rather than a car repair, and you can use the funds for that instead. This way, you can use the funds for whatever you need.

Expensive repairs for cars are highly likely, so odds are one day you will have a big problem to fix with your vehicle. Having an extended auto warranty is a smart investment, but it truly depends on what you can afford and where you think your problems lie. If the automobile maker gives you an excellent warranty, then it may not be in your best interests to purchase an extended warranty.
Extended Auto Warranties: Pros and Cons Extended Auto Warranties: Pros and Cons Reviewed by John Mack on November 06, 2019 Rating: 5

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