Selecting an extended auto warranty can be a smart idea, especially if it will help you cover pricey repairs and services for years to come. However, not every auto warranty comes with the same benefits, so you’ll need to thoroughly understand what your warranty entails before signing on the dotted line.
When deciding on an extended auto warranty, here are the questions you need to ask prior to committing.
Is the Warranty Right for Your Financing Plan?
Depending on whether you are leasing or buying your vehicle, there are certain kinds of warranties that work best for your situation. Let the dealership or representative know how you’re paying for your vehicle and what kind of coverage you’re looking for. Leasing a vehicle sometimes provides you with more options, so it’s a good idea to look into those.
How Long Will the Warranty Last?
You need to know that your car will be able to reap the benefits of the warranty, and if your car is relatively new, it probably won’t do so within the first year or so. That’s why you’ll need a warranty that expires at least a handful of years after you purchase the vehicle. You’ll probably want to make repairs closer to the end of the warranty, so the longer the coverage lasts, the better.
What Types of Repairs and Services Does It Cover?
You need to know exactly what services the extended warranty is providing before committing, so don’t be afraid to ask for all of the details. Read every piece of fine print carefully and inquire about restrictions. Some warranties will require you to return to a specific dealership for any repairs, which is important to be aware of. Also, some warranties actually offer more coverage than you need, so don’t overpay for services you’ll probably never use.