Cars: When to Buy the Extended Warranty

This post is part of a sponsored series. 

You’ve gone through the process of finding your new car and it’s in the final steps of figuring out your payment plan and whether or not you want to purchase an extended service plan (or warranty). You might be asking yourself whether or not you need it, and if it’s worth it or not. To make the process easier, I’ve broken down a few things to consider when purchasing an extended warranty on your vehicle.

What To Consider

First off, this Maryland Chevrolet dealer explains simply what the extended warranty is. It basically is a extended service plan that will cover the cost of repairs after the original factory warranty has expired. So the first question is, how much of the factory warranty is left? The next question that goes hand-in-hand is how long do you plan on keeping the vehicle? Another great question to ask yourself is whether or not it will always be on your mind that your car isn’t covered in case anything goes wrong. If it keeps you awake at night, then it might be a wise investment for peace of mind.

When You Should Buy It

So now you might be asking when do I know if it’s the right move for me to buy an extended warranty? Unfortunately it’s not always cut and dry, but you can get a good idea based off the following criteria:

• It seems like a good fit. Sometimes you can just tell if it’s going to be a good purchase for you.
• When you plan on having the vehicle for a long time, and the car is already used (the factory warranty as expired) and it seems wise to cover any costly expenses that might pop up.
• When you can afford the extra payment. If it’s not a stretch for you to spend a little more each month, then it might be a good idea to go for the extended service plan (given the above criteria are met). It will cover you in case of any work that needs to be done and that peace of mind if pretty priceless.

As an extra note, it’s usually smart to purchase a manufacturer-backed warranty versus the dealer extended warranty. This way, you’re usually free to get the vehicle serviced wherever is convenient for you instead of the same dealership every time. This is good if you move, end up on the side of the road in an unknown place, or just don’t feel like driving to the same dealership you purchased the vehicle at.

I hope these tips are helpful for when you’re considering your next vehicle!