If you’re in the market for a new or used vehicle, then you’ve probably heard the term “extended warranty” float around occasionally. Before committing to any sort of coverage package when you purchase a vehicle, it’s important that you understand exactly how an auto warranty works and what benefits it provides.
What an Extended Warranty Is
Essentially, an auto warranty is a form of insurance that will help you cover the costs of repairs and services for your vehicle later on. The longer the warranty lasts, the less you’ll end up paying for mechanics to fix problems with your ride. However, this form of insurance doesn’t come for free with the purchase of your car. Extended auto warranties are usually sold separately, and there are different types of coverage and services attached to them.
How It Helps You
You might be wondering if paying for the warranty is really a financially savvy choice. In truth, it depends on the circumstances. In many cases, an extended warranty provides a bit of a safety net in case you unexpectedly face costly repairs in the immediate years after you purchase the car. This can help increase the value of your car and save you a little bit of cash in the long run. Additionally, the warranty can help you feel more comfortable buying the vehicle because you know that most problems you experience in the near future will be handled without costing you an arm and a leg.
What to Watch Out For
First of all, it’s important to realize that you don’t have to purchase your warranty at the same place you buy your vehicle. You can shop around with different dealerships and take your time deciding on the one that’s right for you. Secondly, read every part of the fine print before committing to any kind of extended car warranty. You need to understand exactly what it covers and what restrictions it entails before signing, so don’t be afraid to ask questions.