Is An Extended Warranty Worth The Money?

By: Levi Quinn
Submitted: 2008-09-02 17:42:38
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

Spending hours at a car dealership can often get you to feel exhausted and bored from long negotiations regarding price and financing. You want to drive away in your new car, but it is then that the actual problems begin.

The finance manager will try to talk you into availing an extended warranty, which is nothing but an extended contract for further servicing that will cover the cost of repairs even after the warranty period has expired.

You have to deal with these extended warranties extremely carefully, as one wrong move can cost you thousands of dollars.

According to Reed, the auto dealers are scroungers for money and will sell these warranties for whatever they can get.

You must keep it in mind that the auto dealer is going to try every trick in his book to get you to avail the extended warranty.

No matter how hard he tries, you must always be able to control the entire deal. It is not necessary for you to buy an extended warranty either. Keep it in mind that you can always avail a better deal later by being a bit more patient and shopping around.

Only they who get involved in car transactions frequently should buy extended warranties. People who plan to keep their cars for a short period of time can have the repairs covered by the original warranty itself.

In case you are planning to keep a car even after its original warranty dates expire, you need to remember the following:

    * Costly auto repairs can come your way any time.
    * You must always be ready to spend a few thousand dollars on replacing valuable electrical parts or the air conditioner, lest things might go wrong.
    * For how long you intend to stick to the car.
    * You will either have to pay up a stock amount for all repair expenses being covered, or be ready to pay them whenever necessary.

Your car’s reliability is also something that must be taken into account. Even though new cars require few repairs, when needed, the cost of repairing can be extremely high due to a variety of factors.

Even if you intend to keep your car for several years, availing the extended warranty need not be done immediately. You can choose to way an extended warranty even an year later.

Extended warranties are generally of two types: ones provided by the car’s manufacturer and the other known as aftermarket warranties, which are supplied by independent companies.

Availing the extended warranty provided by an auto manufacturer is always the safest thing to do, as it includes an expansive range of services and repairs which can be availed without any hitch until and unless the contract includes a deductible.

Even though extended warranties offered by independent companies could be available at a cheaper rate than ones provided by the manufacturers, one has to be careful as qualitatively it varies from company to company.

There are thousands of offers in the market. It is always safe however to only go for companies you know and completely trust.

Find the best deal on the auto insurance coverage you need. Visit us today for money-saving tips, compare auto insurance quotes and helpful car insurance advice.

Article source: Expert Articles

Most Recent Articles in Leases Leasing category

  • Leasing Office Equipment Versus Buying - By: Jennifer Chilton
    Photocopiers are one of the most used commodities in the workplace and can cost anywhere from pound500 to over pound100,000 to buy. Many businesses, especially in today's financial climate, are choosi-ng to lease office equipment to avoid paying such a large initial outlay. -
  • Oil and Gas Leasing - By: Mary Ann Porsuelo
    What is the difference between oil and gas leasing and how are they valued?
  • Is An Extended Warranty Worth The Money? - By: Levi Quinn
    Spending hours at a car dealership can often get you to feel exhausted and bored from long negotiations regarding price and financing. You want to drive away in your new car, but it is then that the actual problems begin. The finance manager will try to talk you into availing an extended warranty, which is nothing but an extended contract for further servicing that will cover the cost of repairs even after the warranty period has expired.
  • Renting Flats and Houses in London: Beware of High Rents. - By: Jay Stevens
    Many landlords, tenants and property professionals are unaware that letting flats and houses at the high rents common to central London can sometimes leave tenants with little legal protection. This article explains how a loophole in the law affects thousands of people renting accommodation in London.
  • London Property: the outlook for rents in the buy-to-let sector - By: Jay Stevens
    With London property prices crashing and house and flat repossessions increasing, this article examines the outlook for London rental values. Will London property fare better than the rest of the UK? Will rents rise as house prices fall?
  • Should You Buy or Lease a Car? - By: Levi Quinn
    You're in the market for a new car and you don't know whether to buy or lease a car. Typically, leasing a vehicle is most beneficial for those who claim their car or truck as a business expense. Nearly all leasing expenses attributed to business purposes can be deducted. However, leasing does have its downfalls. For instance at the end of the lease you'll have no equity in the vehicle. So this practically guarantees that you will either be leasing another vehicle or buying one. Of course some people see this as a benefit rather than an obstacle since they will have a new vehicle at their disposal at all time.
  • Dallas Community: Education is Important - By: Zack Fair
    One of the number one concerns for family's that are moving is information regarding schools in their area. If you are looking for an elementary school within walking distance to your home that has a certain teacher to student ratio you will need to do your homework.
  • Apartment Finder: Furniture is key to a good move - By: Zack Fair
    Looking for an apartment can be a very tedious and time consuming task. Not to mention the stress involved of making sure that the apartment has everything that you want.
  • Apartment Ratings: Hunting down the Right Apartment - By: Zack Fair
    By reading apartment reviews and ratings from both past and current tenants, you can learn a lot from their experiences so as to be able to choose from the vast number of apartments.
  • Houston Apartment Search Tips - Finding a Low Total-Move-in-Cost Houston Apartment - By: Patrick O'Connor
    Houston apartments come in many shapes and sizes. You can usually find a Houston apartment with a very low total move-in cost. Total move-in cost includes the application fee, deposit, and first months rent. Before focusing on the move-in costs, review whether the total move-in-cost is the most important issue in selecting a Houston apartment.