Vehicle Extended Warranties: Worth It?

It’s often difficult for the consumer to judge whether the add-ons being presented at a dealership are worthwhile in the long run. Among the many gimmicks used to sell more expensive packages, vehicle extended warranties are often pushed by dealerships. Designed to save you from expensive repairs down the line, the idea of not having to pay if something does go wrong can seem appealing. But our auto body and dent repair experts are here to tell you why extended warranties aren’t a good investment.

What are Extended Warranties for Cars?

When buying a new car, vehicle extended warranties are often offered as an add-on to the vehicle package. Extended warranties provide coverage for repairs that may arise during the life of your vehicle. There are many offering extended warranties for vehicles, ranging from dealership to insurance companies, and every plan provides a different level of coverage. Warranties provide the consumer with the peace of mind that if something does happen, they will be protected.

Are Auto Warranties Worth It?

The sad fact is that vehicle extended warranties often cost several thousands of dollars yet are rarely used. A recent survey done by Consumer Reports showed that 55% of all extended warranties are never used to pay for repairs over the life of the policy. Extended warranties are sold as protection against an unexpected engine seizure or transmission failure, but the reality is that the cost of the repairs will often be lower than that of the policy. In general, when put to a cost-benefit analysis, extended warranties are not a good deal for the consumer

Tips if You Decide to Buy an Extended Vehicle Warranty

Some people may still be interested in a warranty for the peace of mind it provides, regardless of the potential for nonuse. If you do decide to get a coverage plan, here are the things you should consider:

• Explore all your options: Many providers provide comparable coverage at a lower price. Don’t buy the first plan you see – make sure to check out everything that is available.
• Bargain, Bargain, Bargain: Don’t be afraid to haggle a bit and try to get the best price. Dealerships are generally willing to cut a deal to make the sale.
• Read the small print: Don’t get swindled by forgetting to check all the details. Make sure you are fully informed before buying a plan.

When it comes down to it, buying an vehicle extended warranty is not worth the cost. But if you do feel the need for peace of mind, be sure that you are getting the best coverage you can for the price.

How to use this information

At Accurate Auto Body, we can offer you top quality service for your vehicle. Our mechanics will help keep your car in top notch condition and on the road. If you are in need of car maintenance, be sure to give Accurate Auto Body a call at 303-344-2122 or contact us through our website for more information and we will be happy help!

 Has your extended warranty proved beneficial for your vehicle?