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The extended warranty on a car is nothing more than a different type of insurance. Just like any insurance the policy or car warranty is to cover the cost on unexpected repairs and breakdowns. You can purchase an extended warranty on both new and used cars. In most cases the car buyer will have the option to purchase an extended warranty from the car dealership where they buy the car.

The real question is whether buying extended car warranties makes economic sense. For you to come up with an answer you will need to think about some other things first. The answers to these questions can help you decide if buying an extension of your original warranty is worth the money.

Car Warranty Questions to Answer

Do you plan on keeping your car for years?

Is your car worth much more than the cost of the warranty?

How old is your car?

Can your personal finances withstand an expensive car repair bill?

How many miles does your car have on it?

If you buy a new car every 3 to 5 years it probably doesn’t make sense to buy extended car warranty . In most cases the car maker’s warranty will cover the car for 3 years or more. The car maker’s warranty will cover any repairs that your car may need.

When you are buying a used car you need to consider the value of the car. For example you buy a car for $7000 and the extended vehicle warranty will be $1750 you should already know the sensible answer. But if you are buying a couple year old car and plan on driving that car for the next seven years it is probably a good idea.

You also want to think about the age or the car you are considering for purchase. If you are buying a 10 year old car there is a good chance that you will have to spend money on repairs. Buying a car with more miles than average may mean that you will have more repairs so be sure to consider that expense.

Many people have heard or believe that an extended car warranty is nothing more than a car dealer scam. The best car warranty like the best insurance policy is the one you don’t have to use. Most car buyers ask if they should buy extended car warranty or is it a scam, when in fact the scam is about the way the car dealer sells the warranty. Some car dealers have been known to charge several times the cost of the warranty. Even employees of car dealers buy extended warranties when they get them for a reasonable price.

Extended car warranties can be purchased with a wide range of services and coverage. When purchasing a car of any kind you should know if there is any warranty included before making your decision. Extended car warranties can be tailored to have a deductible to lower their cost and other do not require a charge. Many car warranties only cover breakdowns but not normal wear and tear repairs. Check all the details, coverages, deductibles and exclusions before you make the decision to buy an extended car warranrty for your car.