Most people flat out refuse to buy the extended warranty when it is offered to them upon buying a new vehicle, and in reality it is certainly understandable. Once you factor in the cost of a vehicle, the insurance which you are going to have to pay and any additional fees included with financing and the like, things can feel as though they are really adding up. With this being said however, the extended warranty cost really is worth it and although it may sting in the short term, over the long term it is going to be a far better option for people who are buying new vehicles.
Here is why it makes sense for anyone buying a new vehicle to invest in that extended warranty.
Passing It On
One of the most common reasons why many say that they do not want the extended warranty is that they aren’t sure whether or not they will even have the vehicle by the time it kicks in. Whether this is just an excuse or the truth, anyone who is thinking this way should know that extended warranties can easily be passed on when they sell the vehicle. All that needs to happen is the name gets changed on the warranty. This can in fact make a vehicle more attractive and valuable to a would-be buyer.
Financial Peace of Mind
People should remember that insurance will not cover them for everything, including mechanical breakdown of the vehicle. Now whilst you have the original warranty you have the peace of mind that should anything go wrong, you are completely covered. The reality however is that the manufacturer guarantees it for this period of time because they are almost certain nothing will go wrong. Once that guarantee is over however, those without extended warranties have to plan financially for the possibility of something going wrong. If you have invested at an earlier date however, you can have the peace of mind that you are not going to have to pay out should something breakdown in the car.
Ultimately an extended warranty is very much like insurance, if you need it then you will be glad that you bought it, if you never need it you will bemoan paying it. The difference with the warranty is that once that original warranty is over, there is much higher chance of things breaking down in the car. Insurance doesn’t really become more or less important over the years, but the extended warranty most certainly will.
If you don’t have the warranty and something should go wrong, it is highly unlikely that you will take the vehicle back to the dealership, because of the costs which they will charge. Taking it to a local mechanic may cost less but the quality of the parts and the service will be nowhere near what you could get at the dealership.
It may cost a little extra, but all told this is simply the smartest move to make.