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The Truth Behind Extended Car Warranty

You want extra protection for your car and you jump on an extended car warranty. Simply put, under extended car warranty the manufacturer bears the responsibility to cover some of the repairs of a newly purchased used or new car. The solution is quite tempting especially for those who purchase cars of unreliable brands. The big question to ask is “should I really get into it?” The answer may be quite disappointing. According to a survey conducted by the Consumer Reports National Research Center, you pay more than you gain.

You Will Probably Not Need the Coverage

The dealer may want to sell an extended warranty right away.  But the truth is that you may never need it. Consumer Reports says “The odds are you’ll never need the coverage, and even if you do, the money you’ll save in repairs won’t come close to what you paid for the added warranty.”

According to Dave Ramsey, a personal finance expert,  “On average, you’ll pay about $1,500 on an extended warranty, and the average repair is $180. I don’t recommend buying extended warranties, ever. If you can’t afford a $200 repair on a car, then you can’t afford the car.” 

Should I Really Get Into It?

With all the expert opinion in mind, we should give credit to the fact that some used cars really need a warranty that extends beyond the factory warranty time. This is true especially about cars that may be troublesome and require periodic repairs. 

The prices, as well as the actual coverage, may vary from dealer to dealer. If you really think that you should get an extended warranty, here is what to do. 

Contact the auto dealer attorneys at The Margarian Law Firm before you sign any papers. We will help you decide what type of warranty is best for you and whether you should get into it at all. Remember, that the prices and coverage vary extensively and you want the best deal for your car. Some warranty plans may be a better fit than others. Similarly, some cars, as they age, may require more repairs and service work than others that may add up in cost. Talking to auto dealer fraud experts is something that will prevent you from being ripped off.

Call The Margarian Law Firm for a FREE consultation. We will help you get the best deal for your car.

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