Is The Extended Warranty Valid for Your Car ?
- January 02, 2020
- William Lewis
The immediate answer is that if you are the cautious type who wants maximum peace of mind, then yes, the extended car warranty is right for you. But there is more to it than that. According to a national survey by Consumer Reports, most of us – looking for useful 95% new and used car buyers will have higher durability. But for some, just knowing that their car is stable is not enough.
People who want more security go-to vehicle service contracts, or extended warranties to provide added protection. These guarantees help car owners to relax, knowing that whatever comes their way, they are prepared for any unexpected repairs. They need no risk. However, a 2013 survey of Consumer Reports found that car owners generally pay more for this extra coverage than for direct benefits.
“Extended warranties are a awesome combination of math, and the reason people sell them is that they bundle them in commissions,” said Dave Ramsey, a finance expert and radio show host who Are clear about the topic. “On average, you’ll pay about $ 1,500 on an extended warranty, and the average repair is $ 180. would never recommend buying an extended warranty. If you can’t afford a $ 200 repair car, You can’t afford the car. ”
What Ramsey will tell you instead is to create an emergency fund for repairs that you can use when needed. That way, if matters arise, you’re ready, but if they don’t, then you’re prepared to pay – or more – for a new car! This is probably more than the case in which you get an extended warranty.
However, if you choose to take the warranty route, remember that the price you are offered is open to negotiation. If you are buying a new car from an unreliable brand, the extension guarantee is right for you. You will find them available through dealerships, auto clubs, and insurance companies. You get a variety of options over time, mileage, coverage, and cost. Make sure you read the small print well! This is why they often get you with specific limits on repairs or where work can be done.
Recently, General Motors has launched an extended warranty that provides bumper-to-bumper coverage for Chevrolet and GMC vehicles up to five years or 60,000 miles and six years or 70,000 miles for the Buick and Cadillac. She does. In contrast, the specific warranty that comes with these particular vehicles is brand new, only three or four years and anywhere from 36,000 to 50,000 miles. Depending on the car, GM plans cost $ 1,000 to $ 2,000, and they will have to purchase a new vehicle. The warranty is transferable, which is excellent for the resale price, and the warranty price can be paid.
Although many other companies offer vehicle service plans, GM claims it is the only automaker to offer a genuine extended warranty. However, for vehicles sold in California, Florida, Missouri, Maine, Hawaii and Minnesota, the GM plan is not available.
With AAA, you will get a car service contract that combines security and other services such as return travel, battery replacement, and car coverage on rent. Of late, AAA warranty sales have increased, and consumer reports have shown that 30 percent of consumers need at least one covered repair.
So, to answer the real question, the wise direction we recommend is to stay ahead of the extra protection and buy a car with above-average reliability. Maintain it properly, and save for repairs that are unexpected and inevitable. To help you make a better decision, you can test our reliability rating before buying a car, new or used.