Is It Worth Buying Extended Car Warranty?

Published On April 5, 2018 | By Adam Morg | Automotive

While buying any new or used cars, the dealer will offer free warranty service for your car for certain period. In some of the states it is necessary to provide warranty for used cars too. Usually, during warranty period very little problems are faced and therefore many dealers often offer for extended period of warranty by paying little extra amount.

Many used Mercedes car dealers may demand an additional $1,000 for such extended warranty however you may never avail such service if your car is quite reliable. However, if there is any sudden problem then you can save yourself from expensive repairing and servicing costs. In that case your extended warranty is really worth buying.

However, most of the consumer report will discourage you to buy such extended warranty for any products including cars. It has been seen that in most of the cases there is no need of any repair during this period and also if you have to take your vehicle for any repairing then its repair cost is far below the price that you paid for your extended warranty.

It is just waste of your money

As per the data available with the consumer reports, merely less than 50 per cent of those buyers who availed extended warranty facility has really used them within the warranty period. The rest of the people who bought the extended warranty never exercised this option.

Also, if you read the fine prints of the terms and conditions of the extended warranty then you will notice that in number of conditions, you still have to pay for the repair. Extended warranty is only limited to certain manufacturing defects. In case, you meet with an accident during this extended warranty period then you have to pay certain amount for your damaged parts.

Should you buy used car warranty?

It is really very difficult to justify paying warranty cost for used cars, you will find number of exclusions when you really go for any repair and servicing. Also, if you look at average yearly expense of repair, you will find it is too less.

When your car is in garage, you are already very tensed and in that situation, you will not prefer to argue about what is wear and tear that warranty provider is offering and what is not covered under the warranty.

Therefore, instead of paying for extended warranty, it is better to set aside this money as yearly repair expense.

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