When you buy a car, the dealership will always try to sell you an extended warranty. They’ll give you all sorts of reasons why it’s a good idea: “It’s peace of mind!” “It covers everything!” “It’s only a few hundred dollars!”
But here’s the thing: buying an extended warranty at the dealership is almost always a bad idea. In this blog post, we’ll explain why you should avoid buying a warranty at the dealership, and what your other options are.
Extended Warranties through The Dealership are Almost Always Overpriced
Many people think that buying an extended warranty from a company on a new car is a wise investment. However, the truth is that these warranties are almost always overpriced, and the coverage they provide is often not worth the cost. Here’s what you need to know about extended warranties before you make a decision.
First of all, it’s important to understand that most new cars come with a manufacturer’s warranty that covers major defects for at least three years or 36,000 miles. In addition, many credit cards offer free extended warranties on new purchases. So unless you’re buying an older used car, you probably don’t need an extended warranty.
Even if you do decide to buy an extended warranty from a company like Endurance warranty, be sure to shop around. The best place to start is by asking your dealership for a quote. However, you’ll likely find that the price is much higher than if you were to purchase the same coverage from an independent provider.
In conclusion, extended warranties are almost always overpriced and unnecessary. Unless you’re buying an older used car, you’re probably better off saving your money or using it to purchase additional coverage from a reputable independent provider.
You Are Not Obligated to Buy A Warranty From The Dealership
There’s a lot of pressure to buy an extended warranty when you’re purchasing a new car. The salesperson may make it sound like it’s the best way to protect your investment, but the truth is that you’re not obligated to purchase a warranty from the dealership.
In fact, there are a number of compelling reasons to steer clear of extended warranties. For one thing, they tend to be quite expensive. In many cases, you can find third-party warranties that offer the same level of coverage at a fraction of the cost.
Additionally, extended warranties often have a lot of fine print that can exclude certain types of damage or repairs. And finally, most new cars already come with manufacturer’s warranties that cover defects and major repairs for several years. So before you say yes to an extended warranty, be sure to do your research and weigh all of your options.
You Might Not Even Need an Extended Warranty
Most people believe that they need an extended warranty when they purchase a new car from a dealership. However, this is usually not the case. In most cases, the manufacturer’s warranty will cover any problems that arise with the car.
And, if you do purchase an extended warranty, it will likely be much more expensive than if you were to buy it directly from the manufacturer. So, unless you are certain that you need an extended warranty, it is best to avoid purchasing one from the dealership.
Your Credit Card Might Already Provide Coverage
Many people don’t realize that their credit card may already offer them extended warranty protection on their car purchase. If you use a credit card to finance your car purchase, you might already be covered by an extended warranty through the credit card company.
This coverage is usually in addition to any manufacturer’s warranty that may come with the car. Credit card companies typically offer this benefit at no extra cost to cardholders. So, if you’re thinking about buying an extended warranty for your new car, you may want to check with your credit card company first to see if you’re already covered.
You Could Use That Money for Something Else
An extended warranty is an added expense, and in most cases, it’s simply not worth it. If you’re on the fence about whether or not to buy one, ask yourself if there are other ways you could use that money instead. Could you put it towards your down payment? Could you use it to buy better tires or winter tires? Could you save it in case of emergency repairs?
Do Your Research
Before you sign on the dotted line for an extended warranty for your car, it’s important to do some research. Otherwise, you could be stuck with a contract that doesn’t cover what you thought it would.
One place to start is by talking to your friends and relatives who have purchased extended warranties in the past. Find out if they had any problems with their coverage and whether they felt like they got their money’s worth.
You can also read online reviews of extended warranty companies. Just be aware that some of these reviews may be biased, so take them with a grain of salt. Once you’ve narrowed down your options, contact the companies directly and ask specific questions about coverage and pricing. By taking the time to do your research, you can make sure you get an extended warranty that meets your needs.
There are plenty of reasons why buying an extended warranty at the dealership is a bad idea. In most cases, you’re better off shopping around for a better deal or putting that money towards something else entirely.