Is an Extended Auto Warranty a Good Investment?

Buying a car can be a bit nerve-racking. First, you have to do a ton of research to ensure that only safe and reliable vehicles make it on your list. Then, you must also decide whether to buy a new or used ride. Obviously, both options come with benefits and drawbacks, so it’s pretty much just a matter of preference. 

Is an extended auto warranty a good investment

For instance, consumers often pay much more for brand new cars from dealerships. Hence, those that want to save money often prefer to go that route. However, one of the biggest issues people have with getting pre-owned vehicles is that there’s no telling what they’re going to get. A person could make the investment, only to watch in horror as the unit breaks down mere days, weeks, or months after making the purchase. 

New cars have manufacturer warranties that provide coverage for various car systems and parts. Then, when an early failure occurs, the company fixes them without the vehicle owner owing a dime. All is not lost once these safeguards expire, though. That’s because you can get the best extended car warranty to protect your vehicle. 

The following are some of the top reasons why it makes sense for you to obtain an extended car warranty.

Low Initial Cost

Different factors are used to determine the monthly premiums charged by warranty providers. These factors include vehicle make and model, mileage, and even the company you buy from. The list goes on and on, but at $350 to $700 annually, the upfront cost of a car warranty usually isn’t all that high. This is especially true considering how expensive some auto repairs can get.

For example, research shows that if an engine control module or ECM goes out, a local shop will charge you between $1,230 and $1,280 to replace it. Meanwhile, if your ride’s fuel injectors stop working, getting the issue resolved by a mechanic will set you back $810 to $1,320. 

Thus, invest in an extended warranty because you won’t feel like you’re spending an arm or leg. And you’ll gain peace of mind, which is always a plus.

Only Pay a Deductible

Another reason why an extended warranty is a good investment is that these products are typically on deductible systems. That means at the time service is due, the owner will pay a set amount. According to research, the average deductible for extended car warranties runs from $75 to $250.  

Once your car needs repair, you have to pay the amount of the deductible. Then, the warranty company will take care of the rest of the bill. Spending a small amount of cash is much better than having to come up with thousands of dollars at one time. Not to mention, it will be easier to fund the deductible amount too. 

Peace of Mind

If you can’t afford to get your car fixed when it breaks down, that can weigh on you. So, take action now to make sure that fate doesn’t become your reality. Make the good investment of getting an extended car warranty for the peace of mind that will come along with it. That should allow you to sleep easy at night because you’ll know if your car’s engine blows, its transmission breaks, or something else malfunctions, you will only have to cover the affordable deductible and not the total amount for the fix.

People have enough stress and anxiety in their lives today. You don’t need the additional problems caused by unexpected car repair expenses. An extended car warranty is a worthwhile investment for the peace of mind it provides the policyholder, if for nothing else.

Increases Resale Value

Even if you aren’t currently planning to sell your vehicle, you might change your mind one day. If that day ever comes, it’s an excellent idea to invest in a car warranty. Owning an extended car warranty will immediately increase your ride’s resale value. Potential buyers will see that the ride has been well taken care of. Then, they’ll be less likely to try and negotiate the price. 

Plus, most service contracts and warranties are transferable, which is something else buyers will appreciate. Due to factors like these, you might be able to sell your car for your original asking price. 

Is an extended auto warranty a good investment

Roadside Assistance

The majority of car warranties feature some form of roadside assistance. Therefore, people who make these good investments have protection against different scenarios. You’ll appreciate this feature if you ever find yourself:

  • Running out of gas
  • Needing a jump for a dead battery
  • With a flat tire 

With roadside assistance, if your car suddenly becomes inoperable as you’re driving on a road trip, you will be able to get the vehicle towed to a mechanic of your choice. In addition, many service contracts provide rental cars while repairs are being made. Hence, as long as you pick the right plan, you won’t have to do without a car or be inconvenienced when your vehicle is in the shop.

Some Final Thoughts

There are plenty of reasons why extended warranties are good investments. These warranty plans give you peace of mind, increase its resale value, and even lower the costs of car repairs. But there’s really only one way to find out everything one of these products can do for you, and that is to get one. Choose a car warranty plan from a top provider and start protecting your vehicle today. You’ll quickly learn what all the fuss is about for yourself.

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