Are Extended Warranties Worth It?

You’ll find a lot of people have different opinions when it comes to extended warranties, but at the end of the day, the only person who can truly decide whether or not they’re worth it is you.

Vehicle service contracts, or extended warranties, offer owners extra protection and peace of mind in case they ever find themselves with a broken engine or in a roadside emergency. Unfortunately, the price to pay for these things can be very, very expensive.

According to a survey from Consumer Reports users, those who did get extended warranties ended up paying more for the coverage than they actually got back in direct benefits. However, this doesn’t necessarily mean warranties aren’t worth it.

How Much Does an Extended Warranty Cost?

Unfortunately, when it comes to the price of extended car warranties, there’s no one-size-fits-all answer. However, you can certainly expect them to be expensive, as most dealerships tend to mark up their costs for the sake of high profits.

How much your extended warranty costs will vary depending on your car’s year, make, and model, what your plan covers, and other factors. In most cases, you’ll have to pay around $1,000 to $3,000 up front, with a deductible fee per repair or warranty service visit.

What Does an Extended Warranty Cover?

One of the great things about car warranties is you can choose the plan that best fits you and your needs. However, you’ll obviously have to pay a higher premium if you want better warranty plans. 

Here are some examples of what you can expect most extended warranties to cover:

Major Repairs

Extended warranties typically cover repairs for your engine, transmission, and other major parts of your car. However, your dealership will most likely have specific conditions for you to follow before you can use their service.

For one, you’ll have to pay a predetermined deductible for the repairs, and you’ll have to take your car to the auto shop your dealership specifies. You’ll also have to make sure you’ve kept up with your car’s required maintenance schedule.

Roadside Assistance

Some warranties also cover roadside assistance, such as towing your vehicle from the side of the road or bringing you a tank of gas when you’re stranded. Some even include flat tires and dead batteries.

It’s a great plan to have if you’re constantly traveling because you never know when you’ll run into a roadside emergency.

Reimbursement for Rental Cars

Sometimes, dealerships also offer extended warranties that cover reimbursement for expenses made due to car issues. For example, if your car breaks down in the middle of a trip, you can reimburse the costs of a rental car or hotel room.

Tips To Consider When Buying Extended Warranties

If you’ve made up your mind about buying an extended warranty, here are some tips you might want to consider before sealing the deal:

Negotiate the Price

Always try to negotiate the price. Extended warranties can be crazy expensive, but you don’t have to agree to the first price they give you. In fact, do your best and try negotiating for a better deal.

Choose a Trusted Company

Extended warranties are expensive, but some companies might offer you a cheap deal. Word of advice: if the offer’s too good to be true, then it probably is.

As much as possible, choose a reputable company with a long history, even if it comes with a bigger price. That way, you can rest assured that they’ll know how to protect your vehicle.

Purchase Warranties as Soon as Possible

Timing is also a big factor when it comes to buying an extended car warranty. If you’re buying one for a new car, you’ll want to purchase protection while your vehicle’s still under the original factory warranty.

Most dealerships typically offer better deals if the original warranty is still ongoing, including longer coverage terms at lower prices.

Go for Used Vehicles With Under 80,000 Miles

If you’re buying an extended warranty for a used car, it’s best to go for vehicles under 80,000 miles. You’ll want to consider how long you plan to keep the car, how many miles you drive annually, and whether you can afford to pay for repairs the warranty might not cover anymore.

Other Options Aside From Extended Warranties

If you decide getting an extended car warranty isn’t for you, then there are certainly other options you can also consider:

Create an Emergency Fund

You can always create an emergency fund of your own. Instead of paying for an expensive plan that you aren’t even sure you’ll ever use, you can funnel all of that extra cash into an emergency fund instead.

Then, just tap into those funds whenever you need any repairs done on your vehicle. That way, you don’t have to worry about getting an extended car warranty.

Buy a Vehicle With High Reliability Ratings

Instead of focusing all your money on an extended car warranty, you can opt for a vehicle with above-average reliability ratings. It might be more expensive, but paying more for a reliable car is more than likely to pay off in the long run.

Where to Get Replacement Parts Compatible With Your Vehicle

Extended warranties can cover repairs and replacements, but not everyone can or wants to pay for an expensive warranty that they’re not even sure if they’ll use. If you decide to forego signing an extended warranty, it’s a good idea to shop for replacement engine and drivetrain parts from a trusted website like  CarParts.com.

You won’t even have to leave your home to get your hands on new parts. You can use your mobile phone or computer to visit CarParts.com. Use our vehicle selector and input your vehicle’s details, including the exact year, make, model, and engine.

We only source our components from the most trusted manufacturers in the industry. In addition, our warehouses are located all over the US, meaning you can receive your order within days.

Save yourself some time, and take a look at our vast collection of quality parts at CarParts.com.