Cons of Buying an Extended Warranty
When it comes to considering an extended warranty from your auto manufacturer, many folks shrug off the offer of extended coverage beyond the factory warranty. Many folks expect the purchase a new automobile to last 5- to 10-years…or even longer. Yet they often won’t pay for an extended warranty.
Here’s why paying extra for that extended warranty might not be worth it…
Con #1: Don’t pay for a warranty you’ll never use
When you’re feeling pressured by the dealer to purchase an extended warranty on your brand new car, consumers often feel overprotective of their new purchase.
Con #2: Too many exclusions
Sure, an extended warranty is meant to make consumers feel peace of mind. The idea that your car will be serviced in the future is supposed to take the stress out of car ownership. However, have you ever read the fine print on your extended warranty? There certainly are a lot of exclusions (meaning things the warranty won’t cover). Considering all of the parts, repairs, and systems not covered by the extended warranty, is it really worth it?
Con #3: Extending a warranty is expensive
Buying an extended car warranty on a new vehicle is kind of link gambling, you may need it and you might not ever need to use it. Take into consideration, that the manufacturer isn’t likely to offer you free service and repairs at their expense. So is the warranty really worth it or will you be paying extra to cover the cost of the repairs and services your warranty doesn’t cover anyway? Chances are the consumer is at the losing end.
Con #4: Restrictions on repairs
Many folks who purchase an extended warranty think they can take their car to be serviced or repaired at the garage of their choice, but that’s not always the case. Most car manufacturer’s list an approved list of service centers (likely according to brand) that honor warranty-covered repairs and services. That means if you move or have car trouble out of country, you may be stuck covering the costs of repairs and services not covered by your extended warranty. Read the fine print carefully.
